New Jersey Internet Gambling: What They’re Saying

The excitement continues to build as New Jersey inches its way to becoming only the second state in the US after Nevada to legalize Internet gambling.  The Garden State has more grandiose plans when compared to Nevada as they have hinted at forming state compacts and taking bets from other countries that allow it.  State Senator Raymond Lesniak, a co-sponsor of the bill, wants New Jersey to become the “Silicon Valley of Internet Gambling”. 

This week, a measure to legalize online poker in New Jersey sailed through a Senate subcommittee with near unanimous support.  Next stop is the Senate, which could happen any time between now and June.  Governor Chris Christie has already voiced his support for such legislation after some initial apprehension. 

“Folks should know I favor it, I want to do it,” he added. “I vetoed the last bill because I felt that it would open up the opportunity for there to be internet gambling houses all over the State of New Jersey. I don’t think that’s what anybody wants. But, I think being able to have this be an Atlantic City centric thing is something that makes sense to me. And given the Justice Department’s go ahead for people to be able to do it, I think we should go ahead and move on it. But, we have to do it in a responsible way and it should be Atlantic City centric.”

Media across New Jersey has begun to chime in.

From The Courier-Post (Editorial):

New Jersey, if it lays the groundwork, would have a chance to snatch the national market and get the next generation of major gaming websites for U.S. players to be based in Atlantic City.

For South Jersey, it would mean new, good-paying jobs. It could potentially mean hundreds of millions of dollars or more in new tax revenue for the state. Lesniak proposes a tax rate of 10 percent on Internet gaming revenue, more than the 8 percent Atlantic City’s casinos pay now on revenue from wagering.

Oddly enough, many online gamblers would welcome taxation. Government regulation of the sector, similar to the tight regulation in traditional casinos, would protect players from cheaters and scams by unscrupulous website operators.

One group not exactly embracing the current measure to legalize Internet gambling in New Jersey is the horseracing sector.  They feel left out, and essentially, they are. 

Tom Luchento, the president of the Standardbred Breeders and Owners Association of New Jersey, Tuesday urged lawmakers to allow race tracks to be a part of the Internet wagering system.

"If Internet gaming was permitted commercially at racetracks, then it actually could be a tool to help improve attendance and add diversity to the types of wagering offered for horse racing fans," he said.

Mary Anne Spoto of the Newark Star Ledger writes:

The bill, which includes no provision for the state’s race tracks, is a revised version of a measure vetoed in the last legislative session by Gov. Chris Christie, who is opposed to allowing gambling outside Atlantic City.

The hearing Tuesday before the Senate Budget and Appropriations Committee included the usual arguments by representatives of the horse racing industry, who contend their exclusion from the millions of dollars in profits envisioned from internet gambling will kill their sport.

"It supports one industry at the expense of another industry," said Thomas Luchento, president of the Standardbred Breeders and Owners Association of New Jersey.

The bill now goes to the full Senate for a vote. A companion measure is currently before the Assembly Regulatory and Oversight Committee, which is considering the need for a constitutional amendment on the issue.

State Sen. Jennifer Beck (R-Monmouth), a supporter of the horse racing industry and whose county is home to Monmouth Park, said she sought a way for tracks to share in the potential revenue from internet gambling, but the options would not withstand a legal challenge or Christie’s veto.

"Barring a constitutional amendment, it’s impossible," Beck said.

Sen. Paul Sarlo, D-Bergen, abstained Tuesday when the Senate Budget Committee voted to advance the measure due to the state's race tracks being excluded from the current Internet gambling measure. 

- Alejandro Botticelli, Gambling911.com