New Jersey to Become Global Online Gambling Hub?
The man who was the driving force behind the passage of internet gaming legislation in New Jersey has his sights set on expanding that industry to the world. According to eGaming Review, New Jersey State Senator Ray Lesniak (pictured) has introduced a bill that would do the following: “Just as e-gaming operators are applying for licenses to offer internet gaming in New Jersey and the United States, they could apply for an international license to offer gaming outside of the U.S.“
The bill, expected to reach the floor of the New Jersey General Assembly on Thursday, has already cleared one major hurdle. Last week, it passed through the Senate State Government, Wagering, Tourism, and Historic Preservation Committee. With that passage, the full Senate will take up discussion on the bill. Similar legislation is also in committee in the New Jersey Assembly, the next step that would have to be cleared.
There would be one major change to current New Jersey regulations that might be a sticking point for some members of the General Assembly and Governor Chris Christie, however. Instead of individual casinos housing the servers and software for online gaming in Atlantic City as regulations currently require, larger, more secure locations would be needed to offer the product to a global clientele. As such, those would probably need to be moved from the casinos on the Boardwalk to special locations in the city.
“Right now, a lot of casinos do not have the space required to maintain internet gaming operations,” State Senator Jim Whelan is quoted by PokerNews as saying. “By relocating the equipment for internet gaming, we will give them the conditions to develop this activity properly.”
If the bill were to pass, the tax rates of 10% of gross gaming revenues could be credited to non-U.S. operators who would locate in the Garden State. “Because of the tax credit, we’re putting down the welcome mat to operators, whether they’re located in Gibraltar, the Isle of Man, or anywhere,” Lesniak stated.
Lesniak is expecting that the bill will have little opposition in the General Assembly. “There’s no competition being taken away from Atlantic City in any way,” Lesniak told EGR. When asked by PocketFives whether online poker pools in New Jersey and elsewhere could be merged under the bill, Lesniak asked us to wait until a press conference scheduled on Thursday to discuss.
Other details of the bill look very much like the legislation that passed earlier this year in New Jersey. Operators would be able to offer internet gaming to countries where online gaming is legal and players would have to be over the age of 21. The license would not be for an expansion of New Jersey’s internet gaming market, but rather allow operators to encompass the global gaming community under New Jersey’s regulations.
Operators would pay an initial licensing fee of at least $200,000 with an annual renewal fee of at least $100,000 and would have to contribute to the $20 million annual fund for the New Jersey Racing Commission for three years.
Lesniak has proven to be one of the more forward-thinking legislators in the U.S. when it comes to internet gaming, not only in his home state, but also in the U.S. as a whole. A longtime proponent of online gaming, he has grand thoughts when looking to the future of the New Jersey gaming scene. “This is just the start,” he stated to EGR. “My vision has always been for New Jersey to become a Mecca for e-gaming.”
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