Gov. Christie Signs NJ Internet Gambling Bill into Law

(from KTVN TV) – [Republican] Governor of New Jersey Chris Christie signed a bill Tuesday legalizing Internet gambling, hours after the state legislature passed a revised bill that made the changes he wanted. They included setting a 10-year trial period for online betting, and raising the taxes on the Atlantic City casinos’ online winnings from 10 to 15%.

New Jersey became the third state in the nation to legalize gambling over the Internet. The lawmakers’ votes and Christie’s signature marked the largest expansion of legalized gambling in New Jersey since the first casino began operating in Atlantic City in 1978.

Nevada and Delaware have passed laws legalizing Internet betting, which also is going on offshore, untaxed and unregulated.

“This was a critical decision, and one that I did not make lightly,” Christie said. “But with the proper regulatory framework and safeguards that I insisted on including in the bill, I am confident that we are offering a responsible yet exciting option that will make Atlantic City more competitive while also bringing financial benefits to New Jersey as a whole.”

The idea is to help the struggling casinos by attracting new gamblers who are not now visiting the casinos. The comps, like free hotel rooms, show tickets, meals or other freebies, would be accrued from online play, but would have to be redeemed in person at a casino, presumably enticing a player to spend more money while there.

Tony Rodio, president of the Casino Association of New Jersey, welcomed the new opportunities for his industry.

“The objectives for the continued stabilization, development and success of Atlantic City that Gov. Christie and our legislature has facilitated over the past couple of years have taken a significant step forward today with the passage of Internet gaming,” he said.

The advent of Internet gambling is particularly good news for one of Atlantic City’s most struggling casinos, The Atlantic Club Casino Hotel. It is in the process of being bought by the parent company of PokerStars, the world’s largest poker web site.

“Our state leaders have stepped up, worked together and seized this moment,” said Michael Frawley, the casino’s chief operating officer. “New Jersey will be better for it as the benefits of I-gaming for our state are only beginning to be fully appreciated. We strongly believe that the economic development and reinvestment in Atlantic City, driven through I-gaming, will be remembered as a critical turning point for this proud town. We look forward to the renewed success this new law will surely bring.”

The state is counting on that success, too. Budget figures released Tuesday by Christie envision contributions to the state’s Casino Revenue Fund soaring from $235 million this year to $436 million next year, largely due to an influx of online gambling revenue.

But Donald Weinbaum, executive director of the Council on Compulsive Gambling of New Jersey, worried that expanding gambling options will increase the ranks of the estimated 350,000 New Jerseyans with a gambling problem. He also expressed concern about young, tech-savvy people developing gambling problems from playing online.

The bill will not take effect until the state Division of Gaming Enforcement sets a start date, sometime between three and nine months after the law is signed. Casino executives have estimated it could take six months to a year to get the system up and running.

It would allow the playing online, for money, of any game currently offered by Atlantic City’s 12 casinos; online poker is expected to be a particularly popular option. …

Gamblers would have to set up online accounts with a particular casino, and could set daily limits on their play.

They also would be subject to the same per-hand limits as gamblers physically present in the casino. Casino executives say final rules have to be approved by the gambling enforcement division, but they expect the state to require gamblers to have to appear in person at a casino to open their accounts and verify their age, identity and other personal information. Payouts could be made remotely to a credit card account or bank account when a player cashes out, if the state approves such an arrangement, the executives said.

They conceivably could even gamble through social media sites, as long as the sites worked with casinos that have an online gambling license, according to Democratic state Sen. Raymond Lesniak. 

Joe Brennan Jr., director of the Interactive Media Entertainment & Gaming Association, said a new industry is ready to take off.  “We were always confident this day would come, because even after he vetoed the original iGaming bill, Gov. Christie immediately came back to us, to try and find a way to make this happen,” Brennan said. “It took a little longer than we expected, but in the end, it was done right, and now it’s time for Atlantic City to take this and run with it.”

And the Poker Players Alliance hailed the law’s enactment. “New Jersey has gone ‘all in,’ ” said John Pappas, executive director of the group, which claims 1 million members, 20,000 of which live in New Jersey. “Residents now will have access to a safe and regulated online gaming market, and the state will have a new source for revenue and job creation – something the federal government has failed to do thus far.”

The bill allows gamblers in other states to place bets in New Jersey as long as regulators determine such activity is not prohibited by federal or any state’s law. It even has provisions for allowing people in other countries to play, although federal law would have to be changed before that could happen, Lesniak said.

Last week, [Republican] Governor of Nevada Brian Sandoval signed Assembly Bill 114 into law.

The new law fully legalizes interactive gaming in Nevada. The previous law meant online gaming licenses would not be effective until the federal government gave the okay. The new law bypasses that regulation giving Nevada a head start in a fiercely competitive national arena.

The tax rate on interactive gaming would be about 16%. Revenue would be split among the federal government, the state where the player lives, and the state where the company is based.

The law also means anyone that has been operating an illegal online gaming company cannot apply for a license for five years or apply for a waiver if they think they haven’t broken the law.

Nevada Governor Sandoval made the following statement after signing Assembly Bill 114, internet gaming legislation:

“This is an historic day for the Great State of Nevada. Today I signed into law the frame work that will usher in the next frontier of gaming in Nevada. This bill is critical to our state’s economy, and ensures that we will continue to be the gold standard for gaming regulation.

“I want to thank Assemblyman Horne for his work on this very important issue, and Senate and Assembly leadership for making this legislation a priority. This effort shows what we can accomplish when we put our party labels aside and work together as Nevadans.”

Reprinted here for educational purposes only. May not be reproduced on other websites without permission from KTVN-TV. Visit the website at ktvn.com.  (The Associated Press also contributed to this report.)