New Jersey is still failing to spend a large portion of the money it has available to address problem gambling, according to a report released this week by the state’s Responsible Gambling Task Force (RGTF). That problem was first highlighted by the Office of Legislative Services (OLS) in 2021, but the RGTF found that through 2024, only about half of the funds earmarked for harm reduction efforts had actually been used. However, the report also projects that spending on clinical services will double starting this year, which will begin to balance out spending and allocations.
The report dedicates six of its 109 pages to the spending issue, in a section titled Unmet Needs. The report also makes extensive recommendations for the state’s responsible gambling efforts in other areas, including:
- A state-wide self-exclusion registry similar to Pennsylvania’s
- Mandatory addiction warnings in gambling advertisements
- Education efforts starting as early as elementary school
- Annual studies to assess the state of problem gambling in New Jersey
Underspending on gambling harm reduction is not exclusively a New Jersey problem. The National Association of Administrators for Disordered Gambling Services (NAADGS) publishes figures annually. Its 2023 budget update showed a 28% increase in national spending, but still found that about half of states with a budget for disordered gambling services didn’t spend the full amount they’d allocated. That was an improvement over the year before, when 59% had left money unspent.
Even so, responsible gambling is tragically underfunded in the US. The same figures from the NAADGS show that only seven states spent more than $1 per capita on dealing with the issue in 2023. Numbers for 2024 will become available this summer.
New Jersey begins to balance spending and allocations
The OLS audit covered the period from 2019 to 2021. During that time, fees collected by the Division of Gaming Enforcement for responsible gambling efforts increased from $2.3 million to $3.2 million. However, actual expenditures remained essentially unchanged at $1.3 million annually.
That meant that by 2021, only 42% of the money available for harm reduction was used for its intended purpose.
The RGTF found that in 2024, the money coming in for such services was $4.3 million, while spending had grown to $3.4 million. So, the annual surplus had shrunk to about 20%, although there was still another $4.3 million in unspent historical funds available.
The report projects that funding to the Council on Compulsive Gambling of NJ (CCGNJ) will remain unchanged at $2.5 million, but that funding for clinical treatment services will nearly double from $1.3 million to $2.4 million.
According to the report, that means spending will exceed income and begin to make use of the unspent funds from previous years. However, its projection doesn’t factor in the industry’s growth and treats income as unchanging at $4.3 million annually. In reality, the industry continues to grow, and New Jersey lawmakers are also contemplating a tax hike for online gambling sites.
What can New Jersey spend its surplus on?
The report suggests several new spending initiatives to make use of the current and potential future surpluses. These include things like media campaigns and free access to responsible gambling tools like website blockers.
However, its strongest recommendation is for more counseling, particularly focusing on cognitive behavioral therapy techniques. This branch of psychotherapy was developed to treat depression but has proven to have a wide range of applications, including addictions. It focuses on helping the patient identify the maladaptive thoughts that lie at the root of the problem, and come up with alternative ways of thinking they can substitute.
The report says:
One potential use of funding is mobile mental health applications that offer structured therapy for PG utilizing CBT, mindfulness, journaling and habit-tracking, peer support, and emergency support. Importantly, CBT is recognized by the National Institutes of Health as the gold standard for psychotherapy, and an especially effective treatment for gambling disorders, as it teaches skills for behavior and thought modification. Ohio uses one such application. This type of application, in contrast to traditional treatments, may resonate strongly with online gamblers and particularly with certain demographics that are experiencing increases in PG. The Task Force recommends exploring the use of these tools for New Jersey residents.
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