New Proposal to make New Jersey a Base for International Gambling CompaniesPublished November 25, 2013 by OCR Editor
Proposed legislation would allow New Jersey to grant licensing to foreign companies, lending these companies legitimacy, and earning profit for New Jersey.
Before New Jersey has even officially launched its public online casino sites, State Senator Raymond Lesniak (D-Union) announced on Thursday his proposed legislation to allow international online gambling providers to set up bases in New Jersey, while accepting only bets from overseas gamblers. The foreign companies would be subject to New Jersey's strict licenses and taxes, lending them added credibility and legitimacy.
"I didn't come up with this proposal," Senator Lesniak stated. "Gaming companies did themselves because they want to come here." He added that talks between New Jersey and these foreign companies have been going on for over two months already.
Roger Gros, the publisher of Global Gaming Business magazine, said that Lesniak's proposed legislation is "right on the money," because international companies would love to establish bases in the United States, because the USA comes with the reputation of legitimacy.
Under the new proposal, New Jersey's Division of Gaming Enforcement would be able to grant licensing to foreign companies that are located in the state, but which do not necessary have any connections with Atlantic City. The companies would only be allowed to offer their site to the populations they already serve.
The benefit to New Jersey would be a 15% tax on all winnings, which is the same tax that state internet sites must pay. New Jersey would also get payments into a fund for the state's horse racing industry, which is estimated to reach approximately $20 million annually.