Gambling regulators in the US state of New Jersey have fined Gaming Innovation Group (GiG) a hefty sum of $25,000. According to the officials who levied the penalty, the fine in question was issued for a once-off geolocation failing on the operator’s part.
Malta-based iGaming firm GiG was reportedly fined in the Garden State for vulnerabilities in its web-based geolocation technology. It was this fault that allowed a punter from Nevada to wager cash on its NJ-facing website late last summer.
It was just a few months ago when the group entered the New Jersey online gambling market through an exclusive partnership with Hard Rock Hotel and Casino Atlantic City. The betting venue opened its doors to the public last June at the site of the former Trump Taj Mahal, and launched its innovative GiG-powered online casino brand just a couple of months later.
During the gaming website’s first week of operation, a Nevada-based player with a sufficient amount of technical knowledge was reportedly able to manipulate a fault in the casino’s geolocation system in order to gamble on the platform. Under New Jersey’s gaming laws, players must be physically present in the state in order to bet at locally licensed websites.
The Nevada punter was able to inspect the GiG-powered platform’s browser code and change data in order to give the impression that he was based in New Jersey at the time of his wagering. The customer in question lost $29 of his own money before officials picked up the system’s vulnerability a few days after the fact.
The fault was detected when a US geolocation company was busy inspecting Hard Rock’s system. The punter was denied access to the online casino immediately, and the system was fixed upon the discovery of the flaw. Hard Rock and GiG also notified regulators in the state about the incident.
Soon after finding out about the situation, the New Jersey Division of Gaming hit GiG with a $25,000 fine for the geolocation issue. In a statement on the matter, the Maltese gambling group noted that the once-off incident of out of state gaming was due to a ‘technical vulnerability’, which was quickly detected and reported.
The firm’s statement also added that it maintains the proper controls to ensure that its offerings are always compliant with gambling regulations. However, GiG is not the only operator to have been hit with fines in New Jersey after suffering from geolocation flaws. Back in 2017, The Stars Group (formerly Amaya) received an identical penalty for a similar technical flaw just months after entering the market through an agreement with Atlantic City’s Resorts Casino.