Internet gambling in the United States is illegal. It’s cut and dried. But a recent federal appeals court decision just may have given states the option to offer internet gambling within their own borders. In cash-strapped New Jersey, which is expected to have the seventh largest budget deficit this fiscal year of the 50 states, the notion has appeal.
State Senator Raymond Lesniak recently introduced bill S3167, which would indeed legalize such popular games as poker, baccarat, blackjack, roulette, craps, slot machines, and more. With New Jersey’s distinction of having the toughest gambling laws in the United States, implementing the on-line form seems a natural and comforting fit.
Currently, there are thousands of global internet gambling sites. They are illegal in New Jersey, in part because there is no way for the state gaming commission to determine whether these games offer fair odds. Many who do still gamble illegally on the internet complain of not being able to collect their winnings. Would you trust a gambling site located in the Philippines or Bulgaria?
The other reason they are not legal in New Jersey is rather obvious – Atlantic City. The state’s 11 casinos generated $3.9 billion in revenue in 2009. While down from $5.2 billion in record-setting 2006, it still is a major contributor to state coffers.
The new internet gambling bill, if eventually made into law, would require all gaming companies to be headquartered around Atlantic City. The New Jersey Casino Control Commission, also based in AC, would be able to monitor the new companies, plus develop “technical standards for approval of software, computers and other gaming equipment used to conduct internet wagering, including mechanical, electrical or program reliablility, security against tampering, the comprehensibility of wagering, …. blah, blah, blah.” Did you get all that?
Internet site operators would pay $200,000 the first year for a license, with a $100,000 annual renewal. They’d also pay a $100,000 non-refundable deposit and another $100,000 towards treating compulsive gambling. They’d fork over a 20% tax to the casino revenue fund and another tax would give money to the New Jersey Racing Commission. No wonder so many groups are salivating over the prospect of internet gambling.
AC Mayor Lorenzo Langford spoke in favor of the internet gambling concept, while casino operators seem concerned that the bill might allow video lottery terminals (VLT’s) and slot machines at the state’s race tracks. The AC casinos are currently paying the horseracing industry $90 million over three years in an agreement that bans VLT’s from tracks.
With New Jersey’s perilious money situation, internet gambling seems like a good revenue producer. The AC casinos will survive because, let’s face it, you don’t have the glitz of the casinos and shows and entertainers and restaurants sitting at home on your computer. And you can bet that the 11 casinos will be the first in line to get those new internet gaming licenses. They see the possibilities!
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