New Jersey Chase Intra-State Online Gambling

This week sees a sports wagering bill being considered by Atlantic City lawmakers which could result in New Jersey being approved as the first US state to legalize internet gambling.

There is currently a race to see which state will be approved as first to offer legal gambling favorites such as poker, blackjack, crap, roulette and slots. Pennsylvania and California are currently chasing hot on the heels of Atlantic City with their own bills planned.

A Bold Move
Part of the reasoning behind the bill is the law not reflecting the facts on the ground. According to statistics there are currently 500,000 online poker players in the state of New Jersey. State Senator Raymond Lesniak (D-Union) points out that "we're missing out on around $100 million in revenue". He added, "It would be a big boost to the casino industry in Atlantic City. It's a bold move, and in this economy we need bold moves."

The bill sets up an annual tax on gross revenue from online casinos of 20% and would certainly see the tax coffers swell.

Intra-State Gambling
There would be no additional casinos planned for New Jersey, the State's existing land-based casinos, all located in Atlantic City, would be given the green light to open up online casinos for local residents.

The bill has been created following on from a recent federal court of appeals decision which stated that online gambling must be restricted within the borders of a state.

Pros and Cons
Although the bill is being welcomed by local gamblers and some governing figures, it has many opponents who are nervous about a potential increase in compulsive gambling.

Others argue that local regulation would provide increased protection for local online gamblers. Any future intra-state online casinos would be regulated by the New Jersey Casino Control Commission who would open a new online division to oversee licensing and operations.

Seeking Normalization
In a statement Interactive Media Entertainment and Gaming Association Chairman (iMEGA) chairman Joe Brennan Jr commented, "We're happy that New Jersey has taken this issue into their own hands. New Jersey is recognized as having the toughest gaming regulators in the US... with a long track record of doing things the right way, Internet gambling will have a great home here and the opportunity to begin normalizing the industry."