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A Senate committee on Monday also approved a resolution to ask voters next year whether to legalize Sports Betting in New Jersey should a federal ban be overturned.
Under the Internet gaming bill, New Jersey would be the first state to allow — and tax — an intrastate online gaming system, and in doing so, could test the federal government’s restrictions on online gambling.
Federal law bans wagering across state lines. However, this bill would allow a system for only state residents — and foreign gamblers — to place bets online. It was unclear whether the in-state restriction would conform with federal standards, but Senate backers say they believe it will.
The measure, sponsored by Sen. Raymond Lesniak, D-Union, was amended to allow residents of other countries, but not other U.S. states, to gamble via proposed online gaming portals on servers based in Atlantic City. The bill passed 29-5 and goes to the Assembly for committee consideration.
Players would be able to log on from anywhere in New Jersey to websites run by licensed casinos. Those casinos would apply for a one-year renewable license to run a portal. Most existing table games would be available at the gaming hubs.
But the games would not be available to all U.S. residents. Lawmakers said the technology exists to prevent out-of-state players from gaining access to New Jersey’s system.
In a significant concession, a tax exacted on gross revenue from Internet gaming would amount to 15 percent, rather than a previously proposed 20 percent.
That money has become critical to discussions of wider gaming policy, as it would be used to fund winners’ purses at horse-racing tracks. That provision prompted some northern New Jersey legislators to agree to support other bills being proposed separately to help revive Atlantic City’s casino and tourism industries.
The bill specifies that all computer servers, equipment and other support services and companies for the online gaming industry be located in Atlantic City.
“That’s a no-brainer, and the whole bill is a no-brainer,” Lesniak said following the vote.
“We need to be bold, to tell the federal government it has no constitutional authority to prevent online gaming here in our state,” he said.
Licenses for online gaming would cost operators $200,000 the first year and $100,000 to renew.
Meanwhile, the Department of Human Services would be charged with running compulsive gambling treatment and prevention programs, which would be funded by licensees at a cost of $100,000 per year.
Also Monday, a Senate committee released a measure that would ask voters whether the state should allow betting on sports events. The bill was approved 6-1 Monday by the Senate Economic Growth Committee, allowing it to receive future consideration by the full Senate.
STORY CONTINUED HERE
Under the Internet gaming bill, New Jersey would be the first state to allow — and tax — an intrastate online gaming system, and in doing so, could test the federal government’s restrictions on online gambling.
Federal law bans wagering across state lines. However, this bill would allow a system for only state residents — and foreign gamblers — to place bets online. It was unclear whether the in-state restriction would conform with federal standards, but Senate backers say they believe it will.
The measure, sponsored by Sen. Raymond Lesniak, D-Union, was amended to allow residents of other countries, but not other U.S. states, to gamble via proposed online gaming portals on servers based in Atlantic City. The bill passed 29-5 and goes to the Assembly for committee consideration.
Players would be able to log on from anywhere in New Jersey to websites run by licensed casinos. Those casinos would apply for a one-year renewable license to run a portal. Most existing table games would be available at the gaming hubs.
But the games would not be available to all U.S. residents. Lawmakers said the technology exists to prevent out-of-state players from gaining access to New Jersey’s system.
In a significant concession, a tax exacted on gross revenue from Internet gaming would amount to 15 percent, rather than a previously proposed 20 percent.
That money has become critical to discussions of wider gaming policy, as it would be used to fund winners’ purses at horse-racing tracks. That provision prompted some northern New Jersey legislators to agree to support other bills being proposed separately to help revive Atlantic City’s casino and tourism industries.
The bill specifies that all computer servers, equipment and other support services and companies for the online gaming industry be located in Atlantic City.
“That’s a no-brainer, and the whole bill is a no-brainer,” Lesniak said following the vote.
“We need to be bold, to tell the federal government it has no constitutional authority to prevent online gaming here in our state,” he said.
Licenses for online gaming would cost operators $200,000 the first year and $100,000 to renew.
Meanwhile, the Department of Human Services would be charged with running compulsive gambling treatment and prevention programs, which would be funded by licensees at a cost of $100,000 per year.
Also Monday, a Senate committee released a measure that would ask voters whether the state should allow betting on sports events. The bill was approved 6-1 Monday by the Senate Economic Growth Committee, allowing it to receive future consideration by the full Senate.
STORY CONTINUED HERE
