Governor Christie has yet to sign into law the recently-passed legislation that would make New Jersey the first state to legalize intrastate online poker.  Updates from PLB will come as they occur.

Hot on the heels of the progress in New Jersey toward legalizing intrastate online poker, Nevada has hired a consulting firm to evaluate the considerations of Nevada passing its own legislation.  I wonder it Nevada is concerned more about NJ or talk that its neighbor, California, which also already has legal live poker, too is considering legalizing the virtual kind.  As I’ve said before here though kids, be careful what you wish for:  what seems good today may seem like a horrid idea 20 years from now.  Just imagine a world with 50 separate online poker bases but no cross-state competition.  Does not sound like good games or player base growth to me.  Don’t want to me a player hater, but just saying…

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.

The poker world had been in a tizzy recently amid speculation of whether Sen. Reid’s proposed poker bill, and its 15-month blackout period, would become law.  Sadly, or maybe not so sadly for others, there is nothing left to discuss.  The bill has been taken off the table.  We may now go back to discussing the merits of intrastate online poker and when (if) New York will decide to cash in on what are predicted to be almost record-breaking Wall Street bonuses by legalizing live poker in New York City.  Okay, maybe that’s just me.

Not too long ago California had been considering intrastate online poker.  That possibility deteriorated as a result of in-state fighting among tribes and other constituents.  Basically, over money.  But hot on the heels of New Jersey becoming (well, just about) the first state to permit intrastate online poker, California is witnessing a renewed effort to pass legislation of its own.   The next big step is to find a bill sponsor as the most recent sponsor is in legal trouble (politicians!).  It’s interesting that two of the states with the largest brick-and-mortar poker strongholds are the ones leading the online charge.  Synergy, as my college professor (of The Office) may say.  Whatever.  As long as there’s legal poker we’re there.

The New Jersey State Senate has passed legislation that would legalize intrastate online poker in New Jersey.  The measure passed by the wide margin of 29-5.  Before it becomes law, however, the bill must be passed by the State Assembly and then signed by the Governor.  Still, this is a monumental step, and given the margin of victory, a positive sign for the chances of the legislation become law.  While I applaud this development, part of me is sad.  I’m picturing talking to my kids 20 years from now about Atlantic City, and them looking at me like I look at my parents when they speak of listening to music on a phonograph.  I’ve heard of such a thing, but cannot believe it really existed.

Two quick hits on this rainy Tuesday.  First, Foxwoods has announced that, like Harrah’s, it too is positioning itself to pounce in the online gaming world when (if, I know, I know) the U.S. legalizes online gaming.  The venture is more speculative at this point (obviously, since online gaming is not yet legal), but it’s further evidence of business betting on legalization.

Second, on Monday the New Jersey Senate Budget Committee approved legislation that would legalize intrastate online gambling.  The bill now may move down the path toward full legislative debate.

U.S. legislators have yet to embrace online poker.  But U.S. business has.  In a forward-thinking move (read:  for when either the states establish intrastate online poker or Congress legalizes poker nationally), CyberArts and US Digital Gaming, Inc. have partnered to develop legal online poker software and servicesfor U.S.-based companies.  This move should not be understated.  These companies are giants in the gaming industry.  Their decision to partner, and to announce it, is a powerful signal that industry is betting on legalization (in some form) in the not too distant future.  For, as any good poker player knows, you don’t bet big unless you stand a good chance to win. 

(Then again, another way to read this story is that we’re so desperate for legal online poker in the U.S. that we’re looking to any sign for hope.)

A New Jersey legislative committee met on Monday to consider various casino bills, among them one that would legalize online poker if played entirely within the state’s borders.   New Jersey would take 20% of the annual gross gaming revenue, which could reach $50 million.  That tax revenue and the thousands of jobs the bill would create are being touted as strong reasons to legalize online poker.  And you thought Hoboken already was a (somewhat) cool place to live in lieu of NYC.  Imagine if you could player poker legally there.  Jackpot!

Be careful what you wish for I suppose.  NJ had been on the fast track toward legalized intrastate online poker.  That was, until, the federal government got a bill out of committee and the NJ Governor announced the state’s intention to overhaul Atlantic City.  All this has caused the push to legalize online poker in NJ to stall somewhat.   What was once though to be a given to happen by the end of the year is no longer being given such short odds.  Which is not to say that the measure is dead in the water.  To the contrary, unlike in California and other states, both houses of the NJ legislature support legalization.  So it looks like the legislation ultimately will pass, but when is now more uncertain.  Then again, if the federal government repeals the UIGEA (either directly or in effect), all this will be for naught and poker will reign supreme in all states.