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New Jersey Internet Gaming Advances

By Mike Pritchard
Add Comment Add Comment | Comments: 0 | Posted Nov. 18, 2010

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As more bad news about declining Atlantic City casino profits have been released, one plan to increase the city’s gambling presence quietly moved forward this week.

Well, quietly unless you follow poker news sites.

A bill to allow New Jersey to become the first state to allow “Intranet” gaming, or Internet gambling only for New Jersey residents, was approved by a state senate committee and will now move before the whole senate. The gambling would be centered out of Atlantic City casinos.

The bill was proposed by State Sen. Raymond Lesniak D-Union.

Proponents of online poker — by far the most popular of online games — have been following Lesniak’s bill closely.

Lesniak, with the support of Atlantic County Democrats Sens. James Whelan and Jeff Van Drew, has been pushing the bill for months. Opponents, however, including the Casino Association of New Jersey, feel the state can’t legally offer Internet gambling until it is legalized on the federal level.

 Lesniak argues that limiting players to state residents would be permissible. The proposal would also allow players from overseas to participate, but Americans in other states would be excluded.

The bill was approved by the Senate Budget Committee on Monday.

According to published reports. New Jersey would receive 20 percent of a company’s online gambling revenue under the bill, estimated to be worth around $50 million annually for the state. About $30 million would then be earmarked for an annual subsidy to the New Jersey horse racing Industry, which is currently being funded by Atlantic City’s casinos.

“The revenues generated and jobs created are now going offshore to international gaming operators,” Lesniak told onlinepoker.net. “S 490 [the bill’s title] will redirect those revenues to our casinos in Atlantic City and, under S 11, to build a bridge to self-sufficiency for our horse racing industry and help save its 13,000 jobs and $1 billion of revenues generated in New Jersey.”

While the bill advanced from committee, it now lands squarely in the middle of debate in Trenton on how best to solve both Atlantic City’s and the horseracing industry's woes.

The annual $30 million subsidy to the horseracing industry is one of the most controversial aspects of the plan.

Gov. Chris Christie has called for a state takeover of the city’s tourist and casino districts and ending the horseracing subsidy. State democrats have countered with a proposition to have the Casino Reinvestment Development Authority oversee the city’s casino districts.

Lesniak is among several legislators in the state who have pledged to save the state’s racing industry.

The bill on intranet gaming could come before the Senate early next year.

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