New Jersey Moving in Direction of Legalized Online Gambling

November 24, 2010 | News Category: Gaming Law

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While the rest of the United States is in two minds about legalizing online gambling, and seem to have reached an impasse, New Jersey is in the process of moving ahead with online casino regulation.

Earlier this year, New Jersey's Senator Ray Lesniak sponsored a bill in his attempt to legalize online gambling in New Jersey. This online gambling bill, S 490, was voted on in the New Jersey Senate, on November 15th, 2010. The bill received a 10 for and 1 against vote in the Senate Budget and Appropriations Committee.

Those politicians who voted in support of the New Jersey online gambling bill, S 490, are of the opinion that online gambling will bring New Jersey much needed income in the next few years. It is estimated that the additional revenue can be counted in tens of millions of dollars. Even though 2010 is coming to an end soon, it is expected that S 490 will take the next step, in which it will be discussed, and then considered by the full New Jersey Senate.

Should the online gambling bill be passed by the New Jersey Senate, it would mean that the land based Atlantic City casinos would be able to offer online casinos to those that are resident in New Jersey, and also to those would-be players who live outside of the United States. The Atlantic City casinos would be offering online versions of their casino games, which would include games such as baccarat, blackjack, and poker.

Should things proceed as hoped, New Jersey would be receiving a 20% cut of the revenue that is generated by the online gambling companies that are operating out of the state. It is estimated that New Jersey could receive as much as $50 million each year in revenue.

As most of the supporters of legalizing online gambling in the US note, Lesniak is of the opinion that it would be better to have more jobs created in New Jersey, and income from online gambling going into the states coffers, instead of to a foreign company offshore. The revenue would be redirected to the ailing Atlantic City casinos, and can also be used to assist the horse racing industry in New Jersey. Assisting the horse racing industry will save about 13,000 jobs, about $1 billion in revenue that is generated in the state.

Should this bill be signed into law, New Jersey will be the state that has led the way in offering intrastate online gambling, and international online gambling out of the US.

iMEGA, the Interactive Media Entertainment and Gaming Association, have given Senator Lesniak much support, especially at the time of drafting, and lobbying for, S 490.