Over the past few weeks momentum has built regarding the online gaming bill for the State of New Jersey. Unfortunately, this momentum has come to a screeching halt. The bill was not put to a vote on the assembly floor December 13th as was originally planned. However, the sports betting bill did make it to a vote and was passed unanimously.
A Last Minute Delay
This delay occurred due to a last minute amendment prior to voting. The amendment consisted of a reduction in the racing levy. The proposed levy was set at 5 percent and introduced to pay race tracks from their expected loss of business if the chance of online gambling went into effect.
Re-approval Required
As per the current procedure, a change in the tax structure posted to any bill requires re-approval by the Senate and Assembly prior to being sent to the floor for voting. A representative to the bill informed the media that there was no change to the prospects of the bill. Apparently it is expected to be approved by both houses unanimously. This is proof that the bill is ready to be presented to the full assembly on January 6th, 2011.
An Overview of the Bill
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Once enacted, the bill will allow residents of New Jersey to gamble online at regulated Internet sites, operated by Atlantic City casinos. Unfortunately the rest of the United States and international customers will not be able to play at these sites. However, gamblers outside of New Jersey will be able to engage in online horse betting.
Effect of the Bill
The introduction of this bill is expected to revive Atlantic City casinos. In November 2010, Atlantic City casinos reported a significant drop in revenue by 12.5 percent compared to 2009. Sponsor of the bill, Senator Lesniak, expects it to generate millions of dollars in private revenue by giving casinos a new product. Furthermore, the bill will generate $35 million in tax revenue for the State of New Jersey.
On December 13th, the gaming and sports betting bills were cleared by the full assembly. Each bill needed 41 votes for approval. 54 legislators voted for the bill and 17 voted against with 4 abstaining. This bill will create America’s first approved pro-online gambling regulation. This could start a chain reaction with many states following until all states allow this form of gambling.
