New Jersey Considers Intrastate Online Casinos

Frank Catania, who has also been director of the New Jersey Division of Gaming Enforcement, says that to keep its gambling revenues coming in, the state needs to allow intrastate online gambling.

A former state assistant attorney general has proposed New Jersey legalize and regulate online casinos operating within state boundaries. Frank Catania, who has also been director of the New Jersey Division of Gaming Enforcement, says that to keep its gambling revenues coming in, the state needs to allow intrastate online gambling.

Catania wrote in NorthJersey.com that New Jersey is experiencing large declines in revenue generated by its Atlantic City casinos. He says that, given recent growing competition in nearby states, a new direction must be found to retain the state's edge in gaming income.

While the UIGEA governs interstate payment transactions to online casinos, legal scholars say individual states are within their authority to legalize Internet gambling within their jurisdiction. California is already well along the process of legalizing online poker within the state.

As long as both the operator and player are in the state, then federal law would not block online gambling. States would be free to tax the industry as they see fit.

Catania notes that registration could require personal appearances, as a method of age verification. Current technology can ascertain potential patrons' locations, ensuring play stays within state.

If the US government doesn't hurry in its effort to repeal the UIGEA, it may find itself beat to the punch by New Jersey and other aggressive states.