Christie signs NJ egaming bill into law
Governor signs bill before taking podium for budget address and straight after Senate and Assembly approve his recommended changes.
New Jersey has become the third state to legalise online gambling after Governor Chris Christie signed Senator Raymond Lesniak’s bill into law today.
The Garden State becomes only the second to legalise both online poker and casino games, along with Delaware, as Nevada’s legislation only allows the former.
The state Assembly and Senate had approved Christie’s recommended changes to Lesniak’s bill, outlined as part of his original conditional veto earlier this month, by votes of 68-5 and 35-1 respectively, shortly before the Governor’s budget address.
Christie acted immediately by signing the bill into law before stepping up to the podium, in a development which could provide a significant boost to Atlantic City casinos and operators looking to enter the US market, such as PokerStars.
“We are offering a responsible yet exciting option that will make Atlantic City more competitive, while also bringing financial benefits to New Jersey as a whole,” Christie said in a statement.
“This was a critical decision, and one that I did not make lightly,” Christie said. “But with the proper regulatory framework and safeguards that I insisted on including in the bill, I am confident that we are offering a responsible yet exciting option that will make Atlantic City more competitive while also bringing financial benefits to New Jersey as a whole.”
The struggling Atlantic Club Casino could be acquired by Stars, pending the outcome of its licence application. The first version of the bill included a ‘bad actor’ clause which would have prohibited any organisations that offered online gambling in the US after 31 December 2006, including the likes of PokerStars and Full Tilt unless they could prove no wrongdoing, but this provision was removed in December last year. Nevada recently added a similar clause to its interstate online poker legislation.
Several powerful established US land-based casinos, including Boyd Gaming and Caesars Entertainment, have an existing presence in New Jersey and will hope their brand recognition and marketing spend will see them grab a sizeable share of the potential online revenues.
Joe Brennan, director of the Interactive Media Entertainment & Gaming Association (iMEGA), told eGR shortly after Christie’s move: “We were always confident this day would come, because even after he vetoed the original iGaming bill, Gov. Christie immediately came back to us, to try and find a way to make this happen. The Governor consistently expressed the desire to see New Jersey lead in this industry, but it had to be done right. It took a little longer than we expected, but in the end, it was done right, and now it’s time for Atlantic City to take this and run with it.”
As a result of the changes included in the legislation today, online winnings will now be taxed at 15% rather than the initially suggested 10%. The law will also undergo a complete review after 10 years.
Christie also asked for recommendations to improve the safeguards to limit risks of gambling addiction, corruption and improper influence, including that state-elected officials “promptly disclose their past and present representations of entities seeking or holding internet gaming licences”.
Furthermore, the fee for issuance of an internet gaming permit has been increased from US$200,000 to $400,000, the fee for renewal from $150,000 to $250,000, and the annual payment by a licensee to compulsive gambling programmes from $150,000 to $250,000.
Earlier this month, Christie said in a statement: “This bill represents an important policy decision for the residents of New Jersey, and a historic opportunity to continue the State’s leadership as a premiere destination for tourism and entertainment.”
The first year of a regulated egaming industry in New Jersey would generate a gross win of as much as US$410m, increasing to $590m four years later, data specialist H2 Gambling Capital has estimated in the forthcoming issue of eGaming Review due out this week.
Read our analysis of the potential for online gambling in New Jersey here.