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Amendments to New Jersey Online Gambling Bill

By: Fabian Rictor, Monday May 28th 2012
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The New Jersey online gambling bill introduced in the Senate by Jim Whelan and Ray Lesniak is scheduled for a vote on May 31. The Senate Bill 1565 is being extensively debated. Certain amendments were introduced last week and the New Jersey Senate has approved these amendments.

Some of the more important amendments are as follows. Any game that has been authorized for land casinos can be offered online after obtaining approval from the regulator. Online gaming companies have been added to the definition of casino service industry enterprises and are covered by the same licensing requirements. The regulator must ensure that both the hardware and software used in online gaming is tested. All the equipment used in online gambling must be located within a licensed casino resort in Atlantic City. The earlier requirement was that it could be located just within Atlantic City. Online gambling companies will be permitted to participate if they have agreements with casino licensees. The state of New Jersey is to undertake an educational campaign on online gambling. The operators have to ensure that information on responsible gambling will be prominently displayed during log in and log off stages. The state will make greater provision for the funding of compulsive gambling treatment.

A chance event in New Jersey has suddenly thrust online gambling, particularly online sports betting, on the top of public communication. Earlier this week thirteen members of a mafia type family were arrested for allegedly running an online sports betting racket out of New Jersey. Senator Lesniak was quick to point out that without legalization and regulation of online gambling such illegal operations will thrive. Organized crime syndicates are using offshore online betting sites to offer uncontrolled and unsafe sports betting. Lesniak called upon the Governor to support legalization of online gambling and also the legal challenge to the federal ban on sports betting. Lesniak said that by providing a legal avenue for New Jersey residents to engage in sports betting and online gambling they would take a funding source away from organized crime and use it for purposes the state desperately needs.

Governor Chris Christie rose to the occasion when he said that New Jersey citizens would be allowed to bet on football, basketball and other games by September 2012. He said that he expected legal action against this from the federal authorities, but was confident that New Jersey would succeed. The state legislature has already passed a law allowing bets to be taken at Atlantic City casinos and the state's horse tracks, which Christie has signed. Casino owners are enthusiastic about the proposal but apparently no one is willing to take the first step singly. Tony Rodio, president of Tropicana Entertainment, said, "But I don't know who's going to want to be the first to open knowing they can shut you down. We'd need a lot more clarity before we invested lots of money in a sports book."

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