The New Jersey state assembly has passed a bill that would make online poker (and other casino gambling, though not sports gambling) legal if played by NJ residents on licensed sites. The measure already passed in the state Senate. The final hurdle before it becomes law is the receipt of Governor Christie’s signature. Observers predict — though this is a bit like reading tea leaves — that he will sign the bill given that to date he has not voiced his opposition to it (Gov. Christie is not one to mince words after all) and that NJ is severely strapped for cash. However, and this is pure speculation on my part, given Gov. Christie’s rumored interest in running for national office (read: the Presidency) on the historically conservative Republican ticket, he may not want to align himself with gamblers. My hunch is it passes. We should know more within 45 days. That’s the deadline by which he must veto the bill or it becomes law.
There are few interesting points about the legislation and its potential implementation. The law specifies that “all equipment used by a licensee to conduct Internet wagering…shall be located…within the territorial limits of Atlantic City.” It further specifies that “[a]ll Internet wagers shall be deemed to be placed when received in Atlantic City by the licensee.” In other words, AC now is the hub for the NJ Internet gambling scene. Could mean hundreds if not thousands of jobs and an influx of money into the depressed area. Running Internet sites is costly and demands many people — servers, tech support, customer support (stop laughing), and so forth. Exactly what Gov. Christie probably wants to revitalize AC now that the state has taken control of AC’s restoration — so yet another reason why he may sign the bill.
How this affects the current mega-sites (FTP, PS, etc.) is unclear, however. Allow me to offer few possibilities. The legislation could result in the sites pulling out of New Jersey like they did in Washington, fearful of legal repercussions. Then again they could keep operating in New Jersey and take their chances that NJ (which, unlike Washington, does not expressly criminalize online poker) will not enforce its turf and sue/arrest them claiming that the intrastate law means interstate poker sites are de facto illegal. Or, and all poker-playing NJ residents hope, the two sides create a mutually beneficial situation (the orange juice and orange peel example from college negotiations classes). For example, NJ could hire FTP or PS (or, more likely, a separate newly formed company) to be the intrastate operator and use the mega-site’s already developed software (with some tweaks of course). The state wins by quickly getting a world class site with robust software (read: immediate revenue) and the sites win by operating in a jurisdiction that otherwise may be closed to them. Bottom line is it’s too early to tell how this will play out, but it need not play out poorly for poker players.
