It’s back to square one for proponents of legalized intrastate internet gambling in New Jersey. A measure introduced by State Senator Raymond Lesniak and overwhelmingly supported by the New Jersey legislature has received a veto from Governor Chris Christie (pictured). The bill would have created the first intrastate internet gambling market in the U.S. and comes at a time when brick-and-mortar gaming revenues in Atlantic City have been falling dramatically.

According to an article that appeared in the Wall Street Journal on Thursday, Christie voiced his concerns about Lesniak’s bill: “In my view, the creation of a legal fiction deeming all wagers to have ‘originated’ in Atlantic City cannot overcome the clear and unambiguous language of the State Constitution.”

Christie added that he did not want to make a hasty decision regarding internet gambling and instead preferred that the legislature create a referendumfor the public. The Journal quoted the Governor as saying, “If the Legislature believes that expanding gambling outside of Atlantic City is in the best interests of the State of New Jersey, it should place the question on the ballot for the voters to decide.”

A referendum would have to be approved by a two-thirds majority of both chambers of the New Jersey legislature and could be sent to voters as early as November.

Among those pushing for licensed intrastate internet gambling in New Jersey is the Interactive Media Entertainment and Gaming Association (iMEGA), whose Chairman, Joe Brennan, told Poker News Daily on Thursday, “We hope that a referendum is eventually successful and that i-gaming continues the progress it has made. With Florida, California, and Iowa all looking to allow this activity, you have to imagine that those states are happy with the Governor’s decision because now they have the opportunity for the revenue, jobs, and investments that New Jersey could have reaped.”

Also weighing in was Lesniak, who commented in a press release sent out on Thursday, “I look forward to working with Governor Christie and his administration in order to get internet wagering up and running as soon as possible. At the end of the day, internet wagering will be one of the most important tools to help promote New Jersey’s gaming industry and create much needed jobs for our state’s residents. We cannot let this opportunity slip through our grasp.”

Lesniak touted that internet gambling could bring in $350 million in new tax revenues, 57,000 new jobs, and $470 million in personal income, which would also be taxed. In addition, the state could have potentially reaped the benefits of being the first mover in the market.

According to the Journal, one of the bill’s biggest adversaries was Caesars Entertainment, which owns the rights to the annual World Series of Poker (WSOP). The news outlet explained, “Caesars is against the state-by-state approach to legalizing Web gambling because the company is hoping to successfully pressure the Federal Government to create a regulated nationwide system, which would be both more simple to manage and much more profitable for the company.” The 2011 WSOP begins on the final day of May.

Lesniak’s bill cruised through the New Jersey Senate by a 34-2 margin and through the Assembly by a 63-11 edge with two lawmakers abstaining. An article published by the Associated Press explained the melee that could have ensued had Christie signed it into law: “If Christie had signed the bill, it could have touched off an online gold rush, with cash-strapped states rushing to approve their own internet betting bills. New Jersey would have taxed internet betting revenue at 23 percent, nearly three times the rate the casinos pay on their winnings.”

We’ll keep you posted right here on PocketFives.com.