Friday, December 21, 2012

UPDATE: NJ Senate approves online casino gambling, 33-3 ...

The New Jersey state Senate on Thursday passed a bill that would permit residents to wager on internet versions of Atlantic City casino games from anywhere in the state. The vote was 33-3, keeping New Jersey in contention to be the first or among the first states to roll out online wagering in 2013.

The previous version of this bill ? vetoed by Governor Christie ? passed in 2011 by a 32-4 vote. I had wondered earlier if it would be so lopsided this time:

Recall that the Assembly?s support for this measure this week dropped from 63-11 to 48-25, with the latter vote having just come on Monday.

Also keep in mind that the new version eliminated the $30 million subsidy for horse racing purses over a span of three years. If that wasn?t enough to cause some horse racing-minded elected officials to lose enthusiasm, Meadowlands Racetrack operator Jeff Gural?s conversation with me could have (fyi, that link explains that this bill would allow for all forms of casino gaming to go online, subject to state approval. A federal version that has been kicked around would only allow online poker).

But the bill wound up getting an extra vote, although state Senator Joseph Pennacchio had some skepticism. Fellow Republican Michael Doherty wondered about the 10 percent tax the state would collect ? asking why the state couldn?t either match the 50+ percent take that Pennsylvania and New York get from racinos, or at least shoot for something in between like 25 percent. Doherty also asked if the horsemen couldn?t have been aided by this measure in some fashion.

Christie now has up to 45 days to sign, veto ? or stand aside, leaving the bill to become law since he didn?t veto it.

Christie usually announces his decisions on these matters in bunches, but dozens of bills are gaining final approvals in the legislature this week. So anxious online gaming backers may have to wait until just after the Super Bowl ? the one in New Orleans on Feb. 3, not the 2014 Meadowlands version ? to find out if Christie again will stop this idea in its tracks.

more background:

Christie last year objected to the purse subsidies while also expressing concern that so-called ?Internet caf?s? might pop up all over the state with caf? owners advertising to attract customers. The bill?s sponsors say that new language prohibiting advertising would render the internet caf? issue moot as well.

But Christie last year also called it a ?legal fiction? to say that the bill does not run afoul of a state law that permits gambling only in Atlantic City, with exceptions for horse racing and the lottery. Bill supporters are counting on a legal opinion by a constitutional scholar that the bill passes muster as long as the electronic servers that complete the betting process are located in Atlantic City.

Other key language in this bill added recently would put PokerStars ? which reportedly is looking to take over the Atlantic Club at a fire sale price in the $30 million to $40 million range ? in position to seek approval from state officials for the purchase.

A spokesman for Christie has declined to comment on whether the revisions in the bill would change the governor?s mind about the bill.

The Casino Association of New Jersey now supports Internet wagering if it is ?implemented in a lawful, appropriate, thoughtful and prudent fashion,? said the association?s president, Tony Rodio.

?We believe that the pending legislation goes a long way towards fulfilling those objectives,? Rodio said.

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Source: http://blog.northjersey.com/meadowlandsmatters/4501/nj-senate-to-vote-on-internet-gaming-today/

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