New Jersey Online Bill Clears Senate Committee

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In February Joe Brennan, Chairman of iMEGA had predicted that New Jersey will have legalized online gambling by the end of 2010. Now it appears that the prediction may well come true. The New Jersey Senate Wagering and Tourism committee cleared a bill that would allow legalized online poker and casino gambling within the state. This was the first such bill to be passed by any Senate or House committee at either state or federal level. The pace at which New Jersey is moving can be seen from the fact that this bill was introduced in the Senate only in January 2010.

During the hearing the legislators were told that the Atlantic City land casinos are in bad financial shape. The only way they can survive is by being allowed to create online gambling sites. Such a proposal would be beneficial for the state of New Jersey as well. It would not only bring in at least $200 million in additional revenue but also create an estimated 1,500 high tech jobs in the southern region of the state. The online gambling network would employ the state of the art software to ensure that only customers within New Jersey borders could access the online gaming web sites.

The move was opposed by the horse racing industry. The federal government has already allowed online betting on horse races and therefore this industry is sitting pretty. But they claimed that they would be badly hurt if the online horse betting sector had to compete with online casinos and online poker rooms. However, their arguments were turned down. They suffered a further setback when a provision that allowed for online gaming facilities at racetrack venues was removed. The Senators on the committee approved the bill by 3 votes to 1 after hearing both sides.

The bill's sponsor, Democratic Senator Ray Lesniak, was obviously pleased. He said that federal law has given New Jersey a window to try an intrastate approach to developing an online-gaming business model. Lesniak has been supported all along by iMEGA. Brennan said, "The state would benefit by being a 'first mover'." Apart from the gross revenues accruing to the casinos and the tax revenues accruing to the state, New Jersey should try and leverage additional revenue by getting Internet gaming companies to establish their American head quarters around Atlantic City. Brennan pointed out that the existing land casino infrastructure and adequate space and work force were available around Atlantic City to create centers of technical support and data storage. This would give New Jersey a strategic advantage over other states. Brennan said, "New Jersey will be able to position itself as the national and potential global capital of the next gaming industry."

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