Christie promises to sign amended New Jersey Internet Gambling bill into law

 

The US state of New Jersey moved a big step closer to legalized online gambling for its residents when Governor Chris Christie vetoed bill no. 2578 last Thursday (7 Feb).

Along with the veto came a statement from Christie underlying his unambiguous support for legalized internet gambling saying, “Now is the time for our state to move forward, again leading the way for the nation, by becoming one of the first states to permit Internet gaming…while Atlantic City’s reputation and stature as one of the premier resort destinations on the East Coast are well-chronicled, it is no secret that revenue from the region’s most important industries, gaming and tourism, has been in decline.”

Third time should be a charm

This is the second time Christie has vetoed an online gambling bill passed by the New Jersey legislature. The first back in March 2011, came amid strong lobby opposition as well as uncertainty as to how the move would sit with Department of Justice’s anti-online gambling stance.

Since then, DOJ’s stance has moderated considerably, revenues have continued to decline in Atlantic City’s casinos ($3 billion in 2012, against $5.2 billion in 2006), super storm Sandy has added further economic strain and Governor Christie has become a vocal proponent of legalized online casino games.

While he didn’t sign bill 2578 into law this time around, he did give an undertaking that he would if it came back to him with minor amendments, including the addition of a 10 year sunset clause and an increase in the proposed gaming tax rate from 10 to 15%. The bill’s sponsor, Senator Raymond Lesniak, is confident the amended bill can be through the legislature by the end or March, signed into law and enabling Atlantic City casinos to begin taking online bets by September 2013.

The sunset clause

Under the sunset clause, the bill will expire after 10 years in the absence of further legislative action. Rather than a permanent law, it’s a 10 year trial. If all goes well; the tax revenues are rolling, problem gambling is under control and criminal elements are kept at bay then the it gets extended or becomes a permanent fixture.

Bit of a masterstroke really. The idea of a trial would be less unappealing to the anti-gambling lobby than a permanent law and the fact that the ‘trial’ is for a decade means it is long enough not to discourage operators from making the investment needed to take part. Shares in company’s likely to have exposure to the trial all surged on Thursday’s news. Caesars up 19%, Boyd Gaming up 10%, 888 Holdings (partnered with Caesars) up 17%, Bwin.Party (JV with Boyd) up 16%.

Clearly the market is confident the trial will be a success.

Live dealers in Atlantic City

This is longer such a far fetched notion. Bill no. 2578, once signed into law by Christie, will broaden the definition of an “Authorized Gambling Game” in New Jersey’s Casino Control Act 1977 (“the Act”), to include, “Poker, roulette, baccarat, blackjack, craps, big six wheel, slot machines, mini baccarat, red dog, pai gow, and sic bo; any variations or composites of such games, provided that such variations or composites, and any above listed game or variation or composite of such game to be offered through Internet wagering, are found by the division suitable for use after an appropriate test or experimental period under such terms and conditions as the division may deem appropriate …”

There are no express impediments to live roulette, live baccarat or live blackjack being streamed from tables within Atlantic City’s major casinos….they just need to be deemed suitable (if RNG games are why wouldn’t they be?).

Of course you won’y be able to play the games unless you live in New Jersey.

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