Third-Party Software Providers— Will the DGE Take a Hard Look at Them?

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Unlock your iPhone and today you can swipe through the plethora of apps from the multitude of independent software providers available at your fingertips. As our phones have transformed into ‘smart phones,’ other forms of technology—including our slot machines and other gaming devices—have experienced a similar revolution. Gone are the days of a slot machine manufacturer designing, creating, programming and distributing slot machines from inception to the casino floor. The use of thirdparty independent contractors in connection with the design, theming, programming and development of gaming devices is now commonplace in the gaming device industry.

As the gaming equipment manufacturing process evolves, the laws and regulations governing the industry are adapting to this new normal, and New Jersey is at the forefront of this change. On Aug. 7, 2012, Governor Chris Christie signed into law, Senate Bill 1323, which, among other regulatory reforms, revised the New Jersey Casino Control Act1 regarding the regulation of casino services industry enterprises (which includes slot machine and gaming equipment manufacturers). With S-1323, New Jersey, for the first time, has statutorily recognized the use of independent software developers and contractors in the development of gaming devices used at the state’s casinos.

Originally published in New Jersey Lawyer Magazine on April 10, 2013.

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