New Jersey Legislature Debating Sports Wagering
With surrounding states of Delaware, Pennsylvannia, and New York, Atlantic City has seen a decline in its attendance and revenue in all of its 11 casinos. The State legislature is contemplating a law that will allow limited sports wagering within the state at its casinos in Atlantic City to offset those losses.
In the past, the legislature has previously brought similar bills to the floor, only to have them defeated or not brought to a full hearing. This time it is different.
Now the casinos are facing losses due to increased competition and the states share of revenue is declining, as is the share of money going to pari-mutuals.
Realizing that something needs to be done to stop the exodus from the Las Vegas of the East Coast, a bill has been offered that might receive a vote in the state legislature as early as Feb. 7, which if passed, would allow the voters of the state to decide the issue.
There are other hurdles that must be overcome, the most prominent of these is the fact that the Federal Government may not allow New Jersey to proceed. Previously, in 1992 and 1993, the State Senate passed bills to allow sports wagering in the State, but stopped short of going to the voters for their approval, that caused New Jersey to miss out on an opportunity that may keep them out of the sports betting business. Soon after the inaction in 1993, the Federal Government made it illegal to conduct sports wagering in all but four states, Nevada, Delaware, Oregon, and Montana. The only state to actively offer this service at this time is of course, Nevada.
New Jersey said it is willing to challenge the Federal Law if voters approve such a measure, while admitting it may have little chance of succeeding.
There is, however, another avenue of revenue that New Jersey seems to be ignoring, one that the Federal Government actual endorses, one that the Federal Government actually made explicit in the passage of the UIGEA in 2006. That law, clearly leaves decisions up to state government on Internet gambling. States are free to develope and enact laws that would allow Internet gambling within their states without the need for a Federal Court battle.
If New Jersey is foward looking and in need of revenue, this is a way to accomplish that goal, without costly, time-consuming litigation that may result from the Feds opposition. All rules governing the methods of Internet gambling are allowed to be made by any state wishing to engage in this type of activity. Certain restrictions would be necessary to ensure that only residents of the state would have access to online gambling within the state, and that controls be in place to ban underage gambling, and this is easily done with existing software.
The State would not need to offer any new licenses, as they could limit the structure soley to existing casinos within the state who have proven to be excellent corporate citizens, and the would welcome the opportunity to offer these services. The tax rate could be structured so that the pari-mutuals get their cut as well as the desperately needed additional funds the state requires to contnue and enhance existing programs. The casinos benefit from having an online edition of their facilities and could extend their individual players club benefits to those online.
Research indicates there are many Americans that want this ability as they have difficulty travelling to AC, and it would also return those in the northern, western, and southern areas that find it easier to travel to nearby cities in the surrounding states, who would prefer to gamble online, at home.
New Jersey is in the unique position of becomming the first in the nation to provide this service, and as more states follow their lead, existing licensees would be able to conduct interstate services with others that have similar laws.
