Initially the bill was vetoed by the Governor as a result of issues surrounding transparency and taxes. Lawmakers adjusted the text and the amended bill passed by an overwhelming majority in the legislature and earned Christie’s seal of approval.
Casinos situated in Atlantic City will have the ability to utilize for a license to offer online gambling. Only the twelve official Atlantic City casinos will be entitled to the license. No other organizations will offer internet gambling, and face stiff fines if they do. All facilities used for the operation of internet gambling must certanly be located within city limits; only bets which can be received by a server in Atlantic City will be legal.
Players must certanly be “physically present” in New Jersey to put wagers. As time goes on, 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 can be played online. (For comparison, Nevada only allows poker.) As of this moment, sports betting won’t be protected by this bill, although their state of New Jersey is trying to fight the federal statute barring the legalization of sports betting.
The bill has a myriad of provisions to keep gambling addiction from increasing, 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 particular time frame, and tracking player losses to spot and limit users who may demonstrate addictive gambling behavior.
Revenue from online gambling will carry a 15% tax TIGER711. The Christie administration states that about $180 million in revenue for their state will be generated out of this tax, however, many analysts think this number is seriously overestimated.
The official regulations, which the bill required the Division of Gaming Enforcement to make, were released on June 3, and are subject to a “public comment period” until August 2 before being finalized. These rules include details such as for example what sort of casino acquires the right licenses and procedures for maintaining network security on gambling sites.
Revenues from Atlantic City casinos have been on the decline for days gone by seven years, and online gambling could be what saves the failing casinos. Since 2006, casino revenue has dropped from $5.2 billion to around $3 billion. Online gambling could be a $500 million to $1 billion industry in New Jersey, which might be enough to keep struggling casinos afloat and save jobs in Atlantic City. Further, although estimates of tax revenue are all over the map, there’s prospect of online gambling to be always a considerably valuable supply of money for the state. The casinos will also need to pay a tax to the Casino Reinvestment Development Authority, that’ll provide further help struggling casinos in Atlantic City.
For the player, low overhead costs mean better prizes and more opportunities to play. Casinos can incent players with free “chips” that have minimal costs for them but give players more opportunities to play and win. The convenience of gambling online allows players to play more with less travel.
One of many goals of the bill is supposedly to attract more folks to visit the brick-and-mortar casinos, but it’s hard to say if online gambling will actually lead to the outcome. You could speculate it may even cause people to go to 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 does not reduce casino gaming.) Advertising for the host casino will be allowed on the internet gambling sites, which might encourage people to visit the casino but is also annoying for players.
Online gambling could be seriously devastating for people who have gambling addictions, as well as cause people to develop them, raising financial and moral concerns. Even with all the current preventative steps the bill requires, it will surely be much harder to stop compulsive gamblers if they can place bets anywhere with a net connection.
Regardless, it will be considered a while ahead of the casinos can actually start their online gambling offerings. The regulations need to be finalized and casinos need to utilize for licensure and develop their gambling websites. This implies the casinos won’t be enjoying this new supply of revenue through the 2013 summer season, which may be Atlantic City’s toughest season ever following recovery from Hurricane Sandy.