Twist in New Jersey Online Gambling Bill

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Since the last few months online gambling legal experts have been predicting that New Jersey would be the first state in America to have regulated online gambling, and that too way before federal regulation. When the bill proposing that Atlantic City land based casinos should be allowed to offer online gambling services (S490) was passed by the State Senate Wagering, Tourism & Historic Preservation Committee, this prediction gained strength. However, within a week a spanner has been thrown into the works and that too from a completely unexpected source. The Casino Association of New Jersey (CANJ) has gone on record stating that they do not want the S490 passed.

CANJ is the body that represents all the land casinos of Atlantic City. It has written to John Burzichelli, the chairman of the Regulatory Oversight and Gaming Committee in the Assembly, urging the committee to defeat the S490. If that is not possible, CANJ suggests that voting on the bill be deferred till the Attorney General can provide further guidance. The reason for this stand was explained by Joseph Corbo, the president of CANJ and the vice president and general counsel at the Borgata. He said that the casinos are interested in providing online gambling services but they want the lead to come from the federal government and not the state government.

On a different note, CANJ also stated that if Atlantic City casinos began to provide online gambling, then the city’s status as a destination resort would be undermined. Frank Catania, a leading gaming expert disagreed with this view. He said that the Internet currently catered to a different demographic population, particularly much younger people. If Atlantic City casinos offered online gambling they would be able to draw this younger crowd to the land casinos and thus increase their business.

Corbo has also cast aspersions on the credibility of the Interactive Media Entertainment & Gaming Association (iMEGA), which has been lobbying for regulated online gambling in New Jersey. His main problem appears to be that iMEGA does not disclose the identity of its members. Joe Brennan, Jr., iMEGA Chairman, responded to that charge saying, "One of our prerogatives is the confidentiality of our membership. We have been through the federal courts and asserted our right to keeping that confidentiality."

Catania has expressed his view that this ploy to derail the S490 will not succeed. He pointed out the CANJ has failed several times before in its attempt to stall gaming legislation. Catania says that because New Jersey’s current legislative session ends at the end of 2011, the legislators will meet all year and get the bill passed in the Senate and through the Assembly as well.

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