Initially the bill was vetoed by the Governor due to issues surrounding transparency and taxes. Lawmakers adjusted the writing and the amended bill passed by an overwhelming majority in the legislature and earned Christie’s seal of approval.
Listed below are the basic principles of the bill:
– Casinos located in Atlantic City will have the ability to utilize for a license to supply online gambling. Only the twelve official Atlantic City casinos is going to be eligible for the license. No other organizations could offer internet gambling, and face stiff fines when they do. All facilities employed for the operation of internet gambling should be located within city limits; only bets which are received with a server in Atlantic City is going to be legal.
– Players should be “physically present” in New Jersey to place wagers. As time goes by, New Jersey may develop agreements with other states where internet gambling is legal to permit out-of-state gambling. The casino’s equipment must verify players’ locations before accepting wagers.
– Any games open to play in the casinos may be played online. (For comparison, Nevada only allows poker.) As of this moment, sports betting will not be protected by this bill, although their state of New Jersey is wanting to fight the federal statute barring the legalization of sports betting.
– The bill has a myriad of provisions to help keep gambling addiction away, such as for example requiring the prominent display of the 1-800-GAMBLER hotline number, a way to set maximum bets and losses over a specific time period, and tracking player losses to spot and limit users who may demonstrate addictive gambling behavior.
– Revenue from online gambling will carry a 15% tax. The Christie administration states that about $180 million in revenue for their state is going to be generated using this tax, however many analysts think this number is seriously overestimated.
The official regulations, which the bill required the Division of Gaming Enforcement to create, were released on June 3, and are susceptible to a yakin77 “public comment period” until August 2 before being finalized. These rules include details such as for example what sort of casino acquires the appropriate licenses and procedures for maintaining network security on gambling sites.
So, will online gambling actually benefit their state?
Revenues from Atlantic City casinos have been on the decline for yesteryear seven years, and online gambling might be what saves the failing casinos. Since 2006, casino revenue has dropped from $5.2 billion to around $3 billion. Online gambling is actually a $500 million to $1 billion industry in New Jersey, which may be enough to help keep struggling casinos afloat and save jobs in Atlantic City. Further, although estimates of tax revenue are throughout the map, there is possibility of online gambling to be always a considerably valuable source of money for the state. The casinos will also have to pay a tax to the Casino Reinvestment Development Authority, that will provide further assistance to struggling casinos in Atlantic City.
For the ball player, low overhead costs mean better prizes and more opportunities to play. Casinos can incent players with free “chips” which have minimal costs for them but give players more opportunities to play and win. The capability of gambling online allows players to play more with less travel.
Among the goals of the bill is supposedly to attract more folks to go to the brick-and-mortar casinos, but it’s hard to express if online gambling will in actuality lead to the outcome. You can speculate it may even cause people to attend the casinos less (However, this seems unlikely; the social element and the free drinks are lost in online gambling. Also, research shows that, at the least with poker, internet gaming doesn’t reduce casino gaming.) Advertising for the host casino is going to be allowed on the internet gambling sites, which might encourage people to go to the casino but may be annoying for players.
Online gambling might be seriously devastating for those who have gambling addictions, or even cause people to produce them, raising financial and moral concerns. Even with the preventative steps the bill requires, it will certainly be much harder to cut off compulsive gamblers if they could place bets anywhere with a web connection.
Regardless, it will be a while ahead of the casinos can in fact start their online gambling offerings. The regulations have to be finalized and casinos need to utilize for licensure and develop their gambling websites. What this means is the casinos will not be enjoying this new source of revenue throughout the 2013 summer season, which may be Atlantic City’s toughest season ever following recovery from Hurricane Sandy.