According to an Associated Press story (as carried by the Washington Post), regulations meant to selectively allow some forms of internet gambling to take place within New Jersey (with a cut to the state, of course) are being enforced by means of "virtual fences" that fall short of the state's borders. An excerpt: "'Unfortunately for some people, there may not be sufficient verification that they are in New Jersey — even if they are — and they’ll be denied,' said David Rebuck, director of the state Division of Gaming Enforcement. 'It’s an unavoidable consequence.'" For some values of unavoidable, maybe.
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