Governor Christie on Thursday issued a conditional veto of the online gaming bill on his desk ? a decision that thrilled advocates of expanded betting, who had feared Christie?s delay until the last day might mean a second veto of such legislation.
State Sen. Ray Lesniak, D-Union, called the decision ?a huge win after all these years of fighting, and something that can help keep Atlantic City from drowning in red ink.?
[full 31-page issuance here via Poker Players Alliance]
Christie sent the bill back to the Legislature seeking changes such as a rise in the tax rate on revenues from 10 percent to 15 percent ? almost double the 8 percent paid by brick-and-mortar casinos. The governor also seeks stricter regulations and transparency about any elected officials who may have represented gaming entities. Christie?s version also would ?sunset? the law in 10 years, leaving future legislators with the burden of actively renewing the law.
But Lesniak said he ?would concur? with those changes, and he predicted passage in ?a matter of weeks.?
Christie linked his decision to his administration?s longstanding efforts to help the Atlantic City casino industry.
?Since the beginning of my Administration, I have stressed the importance of reversing the trend of economic contraction in Atlantic City and have made the revitalization of the region?s gaming and tourism industries a key priority,? Christie said in a statement.
?Some experts predict that Internet gaming will infuse new opportunities and new development into Atlantic City, providing a mechanism to expand the State?s already strong gaming options to a modern platform. Others caution that this type of convenience gaming will lead to declines in tourism, and a loss of visitors to the region.
?Moreover, important questions linger regarding what social impacts will follow the extension of casino wagering across the Internet. All of these issues counsel in favor of a narrowly tailored approach to Internet gaming that preserves the unique character of Atlantic City, while also embracing the tools that can reverse the trend of economic contraction in the State?s gaming and tourism industries.?
Christie had vetoed a similar measure in 2011, and has repeatedly expressed his ambivalence about the wisdom of allowing online gambling ? legalized so far only by Nevada and Delaware and not yet implemented in any state. The state constitutional deadline for the governor to act on legislation was noon today.
The New Jersey bill is similar to the Delaware law in potentially allowing all casino games to be played online, while Nevada?s law allows only online poker. Christie?s conditional veto allows for all forms of casino gaming to be offered online if state officials approve.
The bill has drawn national attention, both for the possibility that a New Jersey law could pave the way for widespread internet gambling across the country, and with speculation on what impact the decision could have on Christie?s prospects should he eventually run for President in 2016.
In a Jan. 22 radio interview, Christie had expanded on his ambivalence.
?Here are the things ? two things that I?m concerned about,? Christie said. ?The first is that I don?t know that it really will help Atlantic City. And I?m concerned that it may drive traffic away from Atlantic City ? that if people can gamble in their own homes on their laptops, why are they going to go to Atlantic City? And I think it?s contrary to what we?re trying to accomplish there.
Secondly, I?m also really concerned about setting up a whole new generation of addicted gamblers. You know, if you can sit on the edge on your bed on your laptop and gamble away the paycheck ? that?s a lot different than making the decision to go down to Atlantic City to gamble in a casino. So I?ve got those two concerns.?
Christie vetoed the 2011 bill in part because it included subsidies for horse-racing purses. The new legislation removed the horse-racing provision and addresses some of Christie?s other issues.
But Christie also had said that it was a ?legal fiction? that the law left intact Atlantic City?s constitutionally-approved monopoly on gambling simply by having the servers that record the gambling from all over the state be based in Atlantic City.
A Seton Hall constitutional law professor, however, gave his stamp of approval to a state Assembly panel last year regarding the location of the servers satisfying the Constitutional question.
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