Legalized internet gambling and online poker may be coming to New Jersey. State Senator Raymond Lesniak introduced S 3167, which specifically legalizes the internet version of popular brick and mortar games like poker, roulette, baccarat, blackjack, craps, the big six wheel, slot machines, mini baccarat, red dog, pai gow, and sic bo.
Servers and monitoring offices for internet gaming companies created under the bill must be located in Atlantic County, New Jersey. The State is charged with protecting consumers under the bill, which explains that a government division would develop “technical standards for approval of software, computers and other gaming equipment used to conduct internet wagering, including mechanical, electrical or program reliability, security against tampering, the comprehensibility of wagering, and noise and light levels, as it may deem necessary to protect the player from fraud or deception and to insure the integrity of gaming.” Online accounts would only be open to players age 21 or older, mirroring the standards of the brick and mortar casino world.
Online poker is mentioned by name several times, mitigating any doubt that the game may not be legal if Lesniak’s bill were enacted into law. Internet gambling outfits would be subject to a 20% tax paid to the state’s casino revenue fund. An additional tax will see a portion of its proceeds go to the New Jersey Racing Commission “to be used for the benefit of the horse racing, including but not limited to the augmentation of purses.”
The act would take effect immediately upon future Governor Chris Christie signing it into law, setting up a model for intrastate online gaming that other jurisdictions could soon mimic. The New Jersey Casino Control Commission would establish a Division of Internet Wagering to oversee operations and licensing. Permit holders would be required to pay an up-front licensing fee of $200,000, with renewals running $100,000. In addition, operators would be required to fork over a $100,000 non-refundable deposit and $100,000 annual fee that would go towards treating compulsive gambling.
The Interactive Media Entertainment and Gaming Association (iMEGA) has been one of the leading forces pushing for legislation in New Jersey. Its Chairman, Joe Brennan, commented in a press release distributed by the trade organization, “We’re happy that New Jersey has taken this issue into their own hands. New Jersey is recognized as having the toughest gaming regulators in the U.S., but as a leading gaming state with a long track record of doing things the right way, internet gambling will have a great home here and the opportunity to begin normalizing the industry.”
Legal online wagering on horse racing is available to New Jersey residents on 4NJBets.com. Those placing wagers must be 18 years of age and have completed a form W9 for tax purposes. An automated phone betting system supplements the website, allowing multiple avenues for New Jersey residents to place wagers on their favorite ponies. Popular New Jersey tracks include Monmouth, Meadowlands, and Freehold.
On a national level, New Jersey Senator Robert Menendez has introduced S 1597, the Internet Poker and Game of Skill Regulation, Consumer Protection, and Enforcement Act. As its name implies, the measure legalizes skill games like online poker in a similar fashion to Congressman Barney Frank’s (D-MA) HR 2267 in the House. S 1597 was introduced in August, but has not yet picked up any co-sponsors. Menendez’s bill defines “skill game” simply as “an Internet-based game in which success is predominantly determined by the skill of the players, including poker, chess, bridge, mah-jong, and backgammon.”
In the meantime, iMEGA anxiously awaits a decision from the Kentucky Supreme Court on the future of 141 internet gambling domain names, including those belonging to PokerStars and Full Tilt Poker, that face potential forfeiture. A decision may be handed down as soon as January 21st.