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The Almighty Buck The Internet United States Your Rights Online

New Jersey Legalizes Online Gambling 62

schwit1 writes "New Jersey Gov. Chris Christie signed a bill Tuesday legalizing Internet gambling. While the bill only allows Atlantic City casino companies to take online bets, the WSJ believes that those casinos will partner with overseas companies that provide services for online gambling, potentially opening up a bigger market. Furthermore, the bill (PDF) will allow bettors from other states to gamble online, so long as regulators determine that the activity isn't prohibited by any federal or state laws. They included setting a 10-year trial period for online betting, and raising the taxes on the Atlantic City casinos' online winnings from 10 to 15 percent. New Jersey became the third state in the nation to legalize gambling over the Internet. Nevada and Delaware have passed laws legalizing Internet betting, which also is going on offshore, untaxed and unregulated."
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New Jersey Legalizes Online Gambling

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  • remember sim city? (Score:4, Informative)

    by crutchy ( 1949900 ) on Wednesday February 27, 2013 @02:23AM (#43022249)

    in sim city (i think 2000 or something) enacting the "legalize gambling" ordinance was usually a sign that you were running out of money

    • by ffejie ( 779512 )
      New Jersey has been running out of money for at least a decade and at least as long as Corzine (the guy before Christie) proved he couldn't manage a budget. If this is a way to raise revenue, why not?
  • Online gambling (with maybe the exception of a couple of states) has never been illegal in the US. However, it IS illegal for US banks to do business with online casinos under a law passed nearly ten years ago. That's a federal law that hasn't been repealed, so how are people supposed to deposit money in accounts with these Jersey casinos?

    • by Anonymous Coward on Wednesday February 27, 2013 @03:26AM (#43022405)

      Bitcoins

    • by SeaFox ( 739806 ) on Wednesday February 27, 2013 @04:03AM (#43022491)

      Online gambling (with maybe the exception of a couple of states) has never been illegal in the US. However, it IS illegal for US banks to do business with online casinos under a law passed nearly ten years ago. That's a federal law that hasn't been repealed, so how are people supposed to deposit money in accounts with these Jersey casinos?

      Easy. The banks do business with the actual Jersey brick and mortar casino, which then transfers the money to the online casino (taking their small cut along the way). That's the whole reason the Atlantic City casinos are partnering with the foreign online casinos to start with, instead of wanting to take advantage of the lockout on the foreign groups and having the entire U.S. online gambling market to divide up with the Nevada and Delaware operators.

    • by Anonymous Coward

      FTA...

      Gamblers would have to set up online accounts with a particular casino, and could set daily limits on their play.
      They also would be subject to the same per-hand limits as gamblers physically present in the casino. Casino executives say final rules have to be approved by the gambling enforcement division, but they expect the state to require gamblers to have to appear in person at a casino to open their accounts and verify their age, identity and other personal information. Payouts could be made remote

    • by rahvin112 ( 446269 ) on Wednesday February 27, 2013 @04:41AM (#43022587)

      People keep saying this. If there was no legal uncertainty Wynn Corporation, MGM and all the other big gaming companies would have been doing it 10 year ago. Gaming over state lines was made illegal in the days of Al Capone. People keep arguing that those statues don't apply because it's the internet rather than telephones (which is frankly an asinine argument). Personally I think the fact that every major gaming house refuses to bet across state lines as better evidence of the reality.

      Nevada legalized online gaming, but only in the state of Nevada (you have to be in the state of Nevada to place a wager online and they check it rigorously). I wouldn't be surprised if Jersey does the same thing because frankly they start taking bets online (across state lines) and they are going to have warrants issued in the states that don't allow it and I can guarantee that Utah will be one of them. Any corporation willing to game across state lines better be prepared to have their executives spend some time in jail.

      I'm certain that the probability of legal online gambling in the US across state lines is zero. It's been illegal and will continue to be illegal because the states that don't allow gambling will always have the number of votes they need in congress to prevent it. I personally believe this is nothing more Cristie trying to save Atlantic City from collapse by trying to milk gaming addicts across state lines and he's going to fail when the feds come down and say you can't do it across state lines. And if he pushes it this will end any national political career chances. People in states with legal gaming have NO idea big of an issue this is in states that don't allow gaming.

      • If there was no legal uncertainty Wynn Corporation, MGM and all the other big gaming companies would have been doing it 10 year ago.

        There are different kinds of uncertainty. Something can be completely legal now but risky to invest in because it may not be legal later.

      • by Bigby ( 659157 )

        What if they have controls in place that verify that state of origin? Most states have legal gambling...albeit with sanctioned monopolies. To take it a step further, could a State argue against online gambling in Atlantic City, yet allow PowerBall? A good lawyer can argue in Federal court that gambling isn't illegal in most States/Commonwealths.

        For states that don't have monopolistic gambling (like OH) or a lottery, their people can be blocked with the appropriate measures.

      • "Cristie trying to save Atlantic City from collapse"

        edit mine,
        Christie is trying to save the casinos,
        this should kill the town....

        Being first, Atlantic City had a lot of business, and it came hand in hand with a lot of stranglehold regulation......

        now that it's much more commonplace regionally, and the regulation is not so onerous say, in Philadelphia.. those locales are both 'newer' and not so stodgy.. The margin left over after the governmental regulations in place makes other areas a lot more profitab

      • by Anonymous Coward

        Looks like we should have a few Powerball lockups eh?

      • New Jersey had to do something Atlantic City took a huge hit when Pennsylvania opened casinos. The state has to let these casinos make up the loss some how and everything is going online now a days.
    • by captainpanic ( 1173915 ) on Wednesday February 27, 2013 @04:59AM (#43022633)

      However, it IS illegal for US banks to do business with online casinos under a law passed nearly ten years ago.

      Ironic that the biggest gamblers are not allowed to do business with legalized gambling institutions.

  • ... and have been for a while.

    I used to work for a large UK gaming company that now has a presence in Nevada and Delaware. They are buying up local US companies so as to expand into that market. They are very good at parting people from their money online I'd expect them to be looking to at least a partnership with, if not an outright purchase of, an Atlantic City casino. This will lead to minimal job creation in the US and funds to be siphoned off into their operation in Gibraltar.

    Its the wild west all ove

  • by Anonymous Coward

    Governments should be completely powerless to do anything about online gambling.

    Legalizing it is obviously "a step in the right direction", which will make govt a bit more popular and bring it a bit more tax revenue... Now people will be more likely to gamble in USD's instead of Bitcoins. NJ bureaucrats will pass a zillion laws "regulating" this online activity, as always benefiting their friends. Political kudos from this will be used to distract from some newly-growing tentacle of govt force. Etc.

    This

    • by Hatta ( 162192 )

      You NJ Libertarians should take a close look at what Christie says [nj.com] about legalizing online gambling, and then compare it to what he says about legalizing Cannabis.

  • by apcullen ( 2504324 ) on Wednesday February 27, 2013 @08:26AM (#43023429)
    After all, since everything is virtual, it's impossible to tell if the game is fair!

    I'm not sure legal and regulated will translate into fair, but it's gotta be closer to it than the offshore sites. Right?
    • Re: (Score:3, Informative)

      by Bigby ( 659157 )

      I agree. However, online gambling with Atlantic City will fall under a gaming regulation organization. That doesn't mean it will be a fair, as in free from fraud. But at least there are measures and penalties with teeth if there is fraud. There is a major disincentive for an Atlantic City casino to not monitor their own online gambling applications.

      That said, I would never gamble online outside of results that are determined outside the computer...like sports betting. In a casino, I never gamble with m

  • Doesn't this strengthen Antigua's position in the WTO case suspending US copyrights? [slashdot.org]

    Speaking of which... any sign yet of a cheap legal music store??

    • I understand Antigua already won their case, but indeed I wonder how such decision would have played in it.

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