breaking: Governor Christie signs online gambling bill into law today

[10 pm UPDATE]

State officials say New Jerseyans will be able to play online version of casino games from their own homes before the year is out, now that Governor Christie has signed off on an Internet gambling bill revised by the Legislature to meet his specifications.

The new law matches those passed in Nevada and Delaware, setting up a race to be the first to get an Internet-gambling system up and operating. Proponents, including state Sen. Ray Lesniak, D-Union, predict the state could add nearly 2,000 white-collar jobs if it wins the competition, since the required software and other infrastructure would likely be utilitized by other states who come on board with Internet gambling:

Lesniak, who has spent three years working on an often-reluctant Christie, has said New Jersey could have its system in place as soon as this fall.

The state Treasurer’s office estimated Tuesday that online casino gambling will bring an added $180 million in new tax revenues to the state.

Christie on Feb. 7 conditionally vetoed an earlier version of the bill, seeking changes such as an increase in the Internet gambling tax from 10 percent to 15 percent and a boost in annual compulsive-gambling program funds from $150,000 to $250,000. The amended bill was the only one up for a vote in the Assembly in an emergency session Tuesday prior to Christie’s budget speech, and it was one of only a handful of votes in the Senate.

The Assembly vote was 69-5-1 and the Senate vote was 36-1.

“This was a critical decision, and one that I did not make lightly,” Christie said. “But with the proper regulatory framework and safeguards that I insisted on including in the bill, I am confident that we are offering a responsible yet exciting option that will make Atlantic City more competitive while also bringing financial benefits to New Jersey as a whole.”

In a radio interview last month, Christie had expressed reservations about the concept.

“I’m concerned that it may drive traffic away from Atlantic City – that if people can gamble in their own homes on their laptops, why are they going to go to Atlantic City?” Christie asked at the time. “And I think it’s contrary to what we’re trying to accomplish there.”

That also was once the concern of the Casino Industry Association of New Jersey. But the group ultimately changed its stance after concluding that online gambling would create an extensive database for marketing purposes, while helping lure poker players to the casinos for tournaments after the players first qualify online.

State Sen. James Whelan, D-Atlantic, said that the law will save about 3,500 jobs because, he said, at least two Atlantic City casinos otherwise would have closed. He included the Atlantic Club, the former Atlantic City Hilton property that could be taken over by the parent company of PokerStars – a well-known online poker company — if state regulators approve its bid for a license.

“This is a jobs bill, plain and simple,” Whelan said.

John Pappas, the president of the Poker Players Alliance, strong advocates for the law, said that he hoped to see the state Division of Gaming Enforcement put out a set of proposed regulations for public comment by the end of March.

“I think that the state will act as quickly as it can, and we hope to see rules that are in favor of the players,” Pappas said. “It’s unfortunate to see that tax increase, because usually a tax on business is passed on to the consumer. But for New Jersey to be able to enter into compacts with other states down the road, they want to have rules that other states would be comfortable with.”

The bill also will allow adult visitors to the state who have accounts with Atlantic City casino companies to play games from remote locations while within the state’s boundaries.

Delaware officials sent out requests for proposals for software manufacturers earlier this month, with a clause that sets Sept. 30 as the deadline for getting the system in place.

Last week, Nevada approved a bill that would allow the state to enter into compacts with other states.

Nevada has the longest history of legal gambling, but does not have a sufficient population to make online gambling a lucrative revenue source without adding residents of other states to the player pool, experts say.

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