New Jersey Online Gambling Bill Leaves Committee, Heads To Senate

The states of California and Florida have lawmakers that are considering ways to raise revenue through regulated online gambling. They would become the first states in the US to regulate the industry, but New Jersey now looks like they may beat California and Florida to the punch.

On Thursday, a bill that has been proposed by Senator Ray Lesniak, passed a committee vote, opening the door for the full Senate to have a say on the issue. The bill, which would allow online casino-type gambling stemming from the Atlantic City gaming industry, passed the committee by a 3-1 vote.

The current federal laws prohibits companies without gaming licenses to offer online gambling. Atlantic City casinos all are licensed, and Sen. Lesniak believes that gives the state the authority to legally regulate Internet gambling.

The Interactive Media Entertainment and Gaming Association has backed the bill since it was introduced, and iMEGA Chairman Joe Brennan Jr. thinks that New Jersey could stand to make millions of dollars as they lead the nation into the next generation of gambling.

In most cases, land-based casinos have been against any regulation of online gambling. The casinos have felt that it would take customers out of their establishments, but lately that stance has softened. In AC, casinos have struggled for the better part of the past two years, and online gambling may be just the idea to once again bring the industry back to prominence.

Estimations are that regulated Internet gambling could bring in $45 to $55 million in state revenue. The AC casinos would benefit greatly, with gross revenue estimates coming in around $250 million. If approved, the bill would also encourage companies looking to start online gaming sites to relocate to New Jersey.

The New jersey online gaming bill comes at a time when the financial institutions have been burdened with the responsibility of blocking online gambling transactions. The Unlawful Internet Gambling Enforcement Act went into effect on Tuesday, although there are lawmakers in Washington seeking to have the law overturned in the near future.

June 3, 2010
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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