States Mull Bets On Online Gambling

Cash-starved states may roll the dice on online gambling.

New Jersey Governor Chris Christie on Thursday vetoed a bill that would have made New Jersey the first state to offer online gambling. Citing public concerns, he said legislators could instead pass the bill by asking New Jersey residents to vote on it in a referendum, the Wall Street Journal reports. The bill to allow Atlantic City casinos to offer online gambling passed through both houses of legislature in New Jersey, with popular support from both Democrats and Republicans, the WSJ reported.

Allowing casinos legally offer online poker to residents could reroute some of the the billions American players currently spend on offshore gambling sites to empty state coffers, industry supporters argue.

The Department of Justice considers almost all forms of online gambling illegal, but states can skirt the federal ban by limiting access to residents, known as intrastate gambling.

Lawmakers in states like Pennsylvania, for example, have previously argued that casinos bring in desperately needed revenue, which last year led to the opening of the SugarHouse Casino in Philadelphia. States are now pushing to expand gambling offerings.

Last week, Iowa lawmakers introduced a bill that would make online gambling legal for state residents. "Based on the existing tax structure, the state could make $30 to $35 million, just from online gambling run by casinos," said Kirk Uhler, vice president of government affairs for Beverly Hills, California-based U.S. Digital Gaming, which is in the running to operate Iowa's online gambling network if the bill passes.

"Extrapolating from the number of people already playing poker online, there could be 150,000 people in Iowa playing every year," he said. "It's regulating, rather than legalizing."

The same calculations are being made around the country. Nick Iarossi, a Tallahassee, Florida-based gambling lobbyist said his state has an estimated 500,000 online poker players, who could bring in between $20 million and $60 million in tax revenue. He expects a proposal to be placed in front of Florida legislators within weeks.

Boosters in California estimated the state could bring in $100 million in tax revenue from the state's 500,000 online poker fans, and that the new industry could lead to 3,000 new jobs, according ABC News. Lawmakers in the District of Columbia are also considering making games like online poker legal for their residents.

Illinois and New York are looking at allowing state lotteries to offer games of chance online, said Anthony Cabot, head of gaming law practice at Las Vegas-based law firm Lewis and Roca. "With the state lotteries, every dollar would go directly into state coffers."

Online gambling is a $12 billion industry globally, said Cabot. Half of that comes directly from the U.S., he added.

Comments

[ronmendelson]

11:18 AM on 03/11/2011

It is only a matter of time until online gambling becomes legal.

Licensing and taxation could help the states with their deficits and generate much needed revenue.

Ron
offshoreXplorer
http://offshorexplorer.com

[Jackie boy]

03:16 PM on 03/05/2011

Legalization is the key. Sure Atlantic City would have stood to benefit greatly from State regulation, but Harrah's is more concerned about the bottom line. Federal regulation will give them vast amounts of more business in the long run...The bill for NJ would have only allowed New Jersey residents to gamble online - the same people who will just as soon walk into Harrah's B&M casino in AC. It's not lost business for New Jersey NOR Harrah's.

Here's the catch, though. I read elsewhere this veto was conditional, meaning it is being sent back to legislature with recommendations for changes. Such changes apparently include prohibiting commercial establishments outside of AC from setting up online gambling sites. News to me, cuz I thought the bill expressedly stated only AC B&M operators could take bets online. I suppose it wasn't clear enough.

Bottom line is that Harrah's is chomping at the bit to start taking business online. They r so impatient, they already have reviews on sites: http://onlinecasinosuite.com/online-casino-reviews/wsopcasino.html Only thing is if you're in the the land of uncle sam you'll be redirected to the main Harrah's website (believe me, I tried). As federal legislation is passed, there's gonna be a direct line straight to the Harrah's online casino cashier 'n New Jersey will have never felt the difference. I guess that's what we'll have to wait and see. Christie may be playing his right cards after all. too early to tell.

[FredZ]

04:30 PM on 03/04/2011

I play online poker 3 to 4 times as week. I played for the last 6 years and will continue to play the rest of life. I could care less what the GOP says I can't do.

BTW I paid cash for my Acura TL with poker winnings:-) Don't ask about my taxes though.

[jpaw]

08:15 PM on 03/04/2011

Here in Washington State we can no longer play. most of the sites will not allow players to join any real money tables.
So you may be forced at some point to either quite or move.

[missmanners]

09:26 AM on 03/04/2011

If you have online gambling, who would go to Atlantic City?

[jwoww]

10:59 AM on 03/04/2011

with NY, DE and PA casinos not many people are going now. NJ Casino Control Commission has no clue how to run gambling. there are so many regualtions when it comes to betting options and table games compared to to Vegas and how in the world the state can prohibit sports betting when it could easily bring billions of dollars into the state and revitalize the industry.

NJ has concentration too much on their antiquated and fading horse racing industry and not on AC or the expansion of casino gamling to other areas of the state.

[thestargazer]

02:37 AM on 03/04/2011

States should take what they have and go to Vegas: Black or Red its almost a 50-50 at doubling your money.

[ScaredAcademic]

02:11 AM on 03/04/2011

Sweet. It's almost as good as being able to participate in the derivatives market....

[lightnessandjoy]

09:30 PM on 03/03/2011

The laws against online poker are ridiculous (I won't comment on gambling because I don't gamble.) The millions of us who play poker online aren't dissuaded by the current laws and I can't imagine very many of us are going to switch to smaller poker sites run by state casinos. It's time to stop this silly nonsense and regulate and tax the industry. The major international poker sites would certainly comply and it would provide some much needed revenue to state governments. Enough with this silly prohibition. I enjoy poker and choose to play and nothing my feeble-minded elected representatives do is going to change that.

[argved]

10:25 PM on 03/03/2011

The major internatio­nal poker sites would need to have operations in the individual states that passed this. Jobs, Jobs. Jobs. Hey Christie what have you got against jobs for the people of New Jersey or did Trump tell you to veto it.

[missmanners]

09:29 AM on 03/04/2011

Gov. Christie Signs Atlantic City Rescue Package

http://newyork.cbslocal.com/2011/02/01/gov-christie-to-sign-atlantic-city-rescue-package/

[Cougar29]

08:49 PM on 03/03/2011

Leftwing Dems are behind this, I'll bet!

[Amalek]

10:05 PM on 03/03/2011

Yep, no conservative would support letting people make their own decisions about what activities they want to be involved in.

[studmoose]

07:24 PM on 03/03/2011

Trump  gaming  halls  in  A.C.  S U C K!

[Amalek]

10:04 PM on 03/03/2011

They suck your money, but that is why the Donald built them.