Atlantic City Weekly

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State Sen. Raymond Lesniak’s (D-Union) bill to allow sports betting in New Jersey, co-sponsored by Sen. Jeff Van Drew (D-Cape May, Cumberland, Atlantic) and Sen. James Whelan (D-Atlantic), is still working its way towards a November referendum, but it’s another part of the bill that is generating a lot of discussion in Internet gaming circles.

The bill includes provisions to allow Internet gaming run through Atlantic City casinos, which could also open the door for other Internet-based gambling companies. Poker games would be a major component.

At a public hearing on the bill held in Atlantic City last month, representatives of Internet gaming companies suggested that if online betting was legalized in the U.S., many companies, now based overseas, would flock to Atlantic City to be their base. The state’s tough regulatory reputation would actually be a draw, they said, as the companies would want to increase customer trust.

Opponents, however, such as Harrah’s Entertainment, which owns four A.C. casinos, say the state should wait until a federal policy on Internet gaming and sports betting is set. Though there are some federal legislative moves underway, it’s not likely that anything will be passed this year.

Now, New Jersey is a hot topic at the Global iGaming Summit and Expo held in Montreal through Thursday (May 13). The Expo is exploring the future of Internet gaming.

Attending for New Jersey are representatives of the Princeton Public Affairs Group, a lobbying and communications firm. The group has found themselves squaring off with representatives of other states, most notably California, that are also pushing for Internet gambling.

Here’s a list of quotes given at the expo by William Pascrell, a partner in the group, as reported by the Casino City Times:

• “We're going to be the first state in the nation to have this bill passed. I'm confident in that.”

• “I think that Harrah's attempt to push the federal legislation and bypass the states having an opportunity to go ahead and do what's in their interests is a mistake. Why do we have to wait for the feds when many states, like California and Florida in particular, have paved the way on so many other legislative processes without waiting for the federal government to act. The federal government can act when they're going to act, I don't think it's going to happen this year.”


• “I think there's a race to be first. New Jersey likes to be first, but unfortunately we're first in some categories we don't want to be first in. I truly believe because of a bi-partisan government, the speakers and president are supportive of this legislation, the governor is supportive of this legislation.”


• “I think we're fighting a real malaise. I think brick and mortar casinos have been asleep at the switch in New Jersey. You've had an economic downturn, you've had the states bordering us bringing in all kinds of new opportunities … We are not looking to get in a war with the brick and mortars, we believe we can help them and they in turn can help us, and it can be a good effective partnership that creates jobs, creates revenue and creates new opportunities.”

• “The thrust of the bill is to unite the brick and mortar existing licensees with online gaming interests; to join them together so they can complement each other. If we don't do this in New Jersey, Atlantic City will be done very soon. We had our worst year in the history of Atlantic City last year, so something's got to turn around very soon.”

Here are some other excerpts:

• “The leading opposition to those bills in New Jersey is Harrah's. Harrah's has said that they prefer a federal solution and they have gone all in on the federal solution. Well we at iMEGA believe that we can walk and chew gum at the same time. Yes, absolutely, we are very supportive of a federal solution. It would be very helpful if we had a federal solution, but while it is a one-fell stroke solution for the industry, it is also a choke point for opponents of the industry.”
– Joe Brennan, Chairman, iMEGA

• “The potential for federal legislation is bringing some urgency to California, and there's a sense that if California does not move before the federal legislation goes into place, it will be a missed opportunity.”
– Andrew Schneiderman, VP and General Counsel, Commerce Casino

• “The ban on Internet poker has been about as effective as the War on Drugs.”
– Lloyd Levine, former Assembly Member, California State Legislature