Christie signs conditional veto of egaming bill
New Jersey Governor Chris Christie calls passing online gaming "a historic opportunity" saying he will approve a bill if his suggestions for greater player protection and transparency are met.
New Jersey Governor Chris Christie has issued a conditional veto of a bill which would legalise online gambling in the state, calling the legislation a “historic opportunity” and setting out crucial amendments which must be made for the law to be approved.
Christie, who many thought would block the bill entirely as he did in 2011 due to fears around cannibilisation of land-based casino revenues, revealed today that he recognises the “value and potential” of internet gaming to support his administration’s efforts to revitalise Atlantic City’s ailing industry.
However he will not let Assembly Bill 2578, which would allow the state’s 12 casinos and racetracks to act as operators of online poker and casino games, to be implemented in his current form.
In his conditional veto Christie asks that online winnings should be taxed at 15% rather than the suggested 10% and for the existing law to “sunset” or undergo a complete review after 10 years.
He also makes 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 would be increased from $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
It is expected that these amendments will be made within the next few weeks and that the bill will be presented once again to Christie for approval.
“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,” Christie said in a statement.
“Such a significant step must be carefully considered, balancing the benefits of job creation, economic development, and the continued revitalisation of Atlantic City against the risks of addiction, corruption and improper influence. It is my duty as Governor to make these determinations, always mindful of my duty to guarantee the continued welfare of our families, our neighbors, and the future generations who will call our State home.”
“My proposal continues the tradition in New Jersey of a fine, careful, and well-regulated implementation of gaming. With these changes, we will increase resources to treat compulsive gambling, provide sensible safeguards to ensure careful oversight and a proper annual review of the implementation of internet gaming, along with a 10-year sunset for future leaders to carefully reevaluate internet gaming as a state policy broadly and critical transparency measures to guard against undue and improper influence and self-dealing.”
The Senator Raymond Lesniak-sponsored bill was first approved by a New Jersey committee in May 2012. Lesniak has long argued that online gambling is needed to boost Atlantic City’s struggling casino industry which has been in rapid decline and last year recorded its worst results since 1993.
Last month a leading analyst claimed legalising online gambling in New Jersey was one of Governor Christie’s “last chances” to protect the future of Atlantic City, explaining that in the near term, the state’s online market could generate between US$650m and $850m a year, based on 5.8 million adult players and a per-capita annual online spend of $111-$149. That would mean an additional $150m in additional tax revenues each year.
The Poker Players Alliance (PPA), commended NewJersey Governor Chris Christie for his decision, with its executive director John Pappas saying: “While the New Jersey legislature has some work to do before this bill becomes law, we believe this is a victory for New Jersey residents who reachedout to the Governor in droves expressing support for this bill.
“Now, New Jersey is well positioned to serve as a leader in the innovative Internet gambling market and can pave the wayfor other states to adapt similar structures moving forward. We urge the legislature to act swiftly to pass this important legislation.”
The first version of the bill included a ‘bad actor’ clause made 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. This provision was removed from Lesniak’s bill in December.
PokerStars has since agreed to acquire the struggling Atlantic Club Casino Hotel from investment group Colony Capital for a fee thought to be less than $50m, and is in the process of applying for an operator’s licence from the state’s gaming commission.