Governor of New Jersey Chris Christie recently made the decision to veto the online gambling bill. This comes as no surprise to most advocates for the bill. In fact, almost every online gambling analyst in the industry predicted that this outcome would occur. Despite the decision, the primary topic of conversation is the reasons the Governor gave as to why the bill was vetoed.
Playing both Sides
Governor Christie rode the fence prior to making this decision. He praised the bill’s intent which was a signal for online gaming enthusiasts that Christie was on their side. However, he vetoed the bill because it did not fit with the big picture of gambling in New Jersey.
Main Reason for the Veto
Christie’s primary reason for the veto was it went against the Constitution of New Jersey which requires casino gambling to be restricted to Atlantic City only. However, the online bill, known as S490, attempted to grant all residents of New Jersey access to online gambling. As a result of the constitution, S490 required the servers of any potential online gaming site to be located in Atlantic City. Therefore, players outside the city limits could gamble online.
Unfortunately, on this action by S490, Governor Christie stated, “In my view, the creation of legal fiction deeming all wagers to have ‘originated’ in Atlantic City cannot overcome the clear and unambiguous language of the state Constitution.” There were a few other objections from the Governor as well.
Other Objections from the Governor
click here to see most Popular PagesFirst, the bill requires that the revenue generated by the state from this industry should be used to subsidize horse racing. However, Governor Christie intends to make horse racing self-sustaining. Second, the Governor stated recognized that the bill did not address commercial establishments outside of Atlantic City like nightclubs, bars and restaurants offering online gambling within their walls.
The Agreement Prior to the Veto
Prior to the veto, Joe Brenna Jr. or iMEGA and Senator Raymond Lesniak claimed to be assured by Christie that he would only veto the bill on the grounds that it did not prevent illegal gambling entities from setting up shop near the state’s borders. At this point Christie was to partner with the Senator, add his name to the bill and reintroduce it with the fixed measures. Lesniak is still confident that this bill will pass next time around.
