New Jersey Committee Approves Intrastate Gaming Bill
California led the way with the introduction of the issue of intrastate online gaming in 2008, but New Jersey not only began its own examination of the issue in January of 2010 but took it to committee by June and seeks to move it forward at just as quick a pace. The topic of intrastate online gaming is a somewhat controversial one, especially in states where Indian gaming claims it interferes with pacts but also as a topic that tends to divide progressive and conservative politicians. But the revenue that could be gained from such an endeavor has spurred the movement by several states to push the envelope, and New Jersey might be leading the way on it.
The process began when State Senator Raymond Lesniak introduced S.B. 490 in January, a piece of legislation that proposed state-level poker and casino games offered online and operated through land-based Atlantic City casinos. The new industry would piggy-back on the already strong gaming industry in the state with regulation by the New Jersey Division of Gaming Enforcement. The purpose would be to capture the money currently spent by residents on offshore websites like PokerStars and Full Tilt, though also including blackjack, baccarat, and other casino games, and bring that revenue into the state of New Jersey through the new intrastate online gaming industry.
During the first week of June, the State Senate’s Wagering & Tourism Committee considered the bill – the Intra-State Internet Gambling bill – and given a positive 3-to-1 vote to push it out of committee. The next step lies in the hands of the Senate President, who is now to decide whether or not to bring the bill to the floor of the legislature for a vote.
Assistance with committee arguments for the bill came from Interactive Media Entertainment & Gaming Association (iMEGA), which commissioned a study from Econsult to show the economic benefits of intrastate gaming. The Philadelphia-based firm concluded its study by showing that New Jersey could find as many as 1,900 jobs in intrastate gaming, as well as $250 million in annual gross gaming revenue and as much as $55 million in tax revenue. But, if the industry goes and New Jersey becomes a hub for the online gaming industry, those numbers could rise to 57,000 jobs, $7 billion in gaming revenue, and $472 million in tax revenue.
Joe Brennan, Jr., iMEGA chairman, noted, “Though we’re not across the finish line yet, the committee vote is significant progress. We’ve gotten to this point by making this debate about more than taxes from gaming revenue, which is a big one-note. Instead, we’ve made a significant case for job creation, capital investment, and the opportunity for New Jersey to become the national and global hub for this industry. And those numbers make this a compelling option for New Jersey legislators to consider.”
William Pascrell III, a lobbyist for the online entertainment industry, added, “Establishing intrastate internet gaming for state residents will enable New Jersey to funnel new and existing online players into sites licensed through Atlantic City’s casinos, capturing previously lost tax revenue and offering New Jersey casinos a new channel for driving traffic to the resorts.
