TRENTON — Legislation that would allow people to gamble online in virtual Atlantic City casinos took a tentative step forward last week.
Although the Senate Budget and Appropriations Committee voted 11-0 to advance the proposal, five senators voiced concerns, primarily about excluding horse tracks from the plan. And while the bill's chief sponsor expressed hopes online gambling could be running by the fall, he also said an agreement hasn't yet been reached with Gov. Chris Christie, who vetoed a similar bill once before.
"What we want to do is get this Internet gaming up and going before the end of the year, hopefully by September, so that New Jersey can be the first in the nation and lead the way," said Sen. Raymond Lesniak, D-Union.
Bill Pascrell III, a lobbyist for Interactive Media Entertainment & Gaming Association, the online gaming industry's trade group, said the state that establishes Internet gaming first is likely to become the technology hub for that portion of the industry as it becomes more common. He said Delaware, Nevada, California and Florida have action stirring in the area.
"We must be first," Pascrell said. "We need to create the Silicon Valley of Internet gaming in New Jersey."
A consultant cited by officials from the state Casino Revenue Fund Advisory Commission said online gambling could generate $210 million to $250 million in gross revenue, 1,900 jobs and $46 million to $55 million in tax revenue.
Thomas Luchento, president of the Standardbred Breeders and Owners Association of New Jersey, predicted that just as Atlantic City casinos ate into racetracks' revenue and casinos in nearby states undercut Atlantic City, online gaming through Atlantic City would hurt account wagering through telephones and the Internet now allowed for New Jersey horse racing.
"While the Internet gaming pool may grow, we argue that it will do so by drawing from existing wagering pools. History has proven this," Luchento said.
Christie objected to an earlier bill that would have steered some of the tax revenues from online gambling into higher purses for horse racing, as a way to help the tracks.
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The tracks and the prospect of a casino in the Meadowlands were the not-so-subtle backdrop to the hearing, with bipartisan concerns voiced that the state is missing an opportunity to help fend off competition from other states in the name of protecting Atlantic City.
"This insanity's got to stop," said Sen. Joseph Pennacchio, R-Morris. "I don't think that Atlantic City or the gaming in Atlantic City should be telling the citizens of New Jersey what we can and can't do. Our policy going forward has to be based on the best interests of what is in total for all of the citizens of New Jersey."
"I understand how important the economy of Atlantic City is for the rest of the state," said Sen. Steve Oroho, R-Sussex. "However, we've got to recognize that an exclusive market area is a huge subsidy, a huge subsidy for Atlantic City, and we must work for ways to get the racetracks in there, for racinos."
The Senate budget committee chairman, Sen. Paul Sarlo, D-Bergen, was the only lawmaker at the meeting who didn't support the bill, although ultimately he abstained from voting, rather than vote against it. He said "there's no reason" for such a bill not to include the tracks.
"I don't know what else we can do to help Atlantic City," Sarlo said. "They're going to have to begin, the industry is going to have to begin to help themselves. There's only so much we can do, unless we vote today to have no taxes in Atlantic City."
Sen. Jennifer Beck, R-Monmouth, said she has explored the possibilities of including horse tracks in the online gaming plan but that the Christie administration believes that would violate the constitution, which allows games of chance only in Atlantic City.
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