Online Gambling in NJ
New Jersey State Sen. Ray Lesniak was the first to propose a bill in 2010 to legalize Internet gambling. This was done as a solution to the financial crisis in the gambling industry of Atlantic City. As a result, the bill passed the Senate, but NJ’s Gov. Chris Christie vetoed it due to the possible spread of online gambling outside the city.
On April 15, 2011, the US Department of Justice blocked the activities of four world poker sites in the country since they did not keep bettors' money separate from company finances. For this reason, players lost millions of dollars, which were paid back only after 6 years. This day in the gambling industry was named Black Friday.
In the same year, the Wire Act issued a ruling that online betting that is not related to sports gambling should not be considered illegal. Federal authorities approved the ruling, and Lesniak developed a new bill that took into account such comments from Christie as the storage of computer equipment for online gambling on the territory of Atlantic City. As a result, all Internet casinos whose software was located outside the city were considered illegal.
In early 2012, Lesnyak's new bill was passed to the Senate. It had a license cost of $200,000, an annual fee of $100,000, and a tax rate of 10%. More than half a year later, the bill was passed, but Christie vetoed it again, demanding an increase in fees and tax rates. After making changes, the governor signed the law legalizing Internet gambling. NJ was followed by other states of the east coast, including Pennsylvania, Michigan, West Virginia, and Connecticut.
There are several licensed NJ casinos now that are monitored by the New Jersey Division of Gaming Enforcement (NJDGE). Citizens aged 21 or older can try themselves in Internet gambling.