Efforts to legitimize online gaming in New Jersey took center stage today at a press conference in Trenton as Assemblymen Tony Impreveduto and Neil Cohen kicked off a campaign to build support for a bill that would establish regulations for Internet casinos.
The bill, A-3150, would permit Atlantic City's licensed casinos to operate regulated Internet gambling websites.
The two legislators, who cosponsored the bill, say the measure would not only cut down on the fraud associated with the industry, but also create a safety net to protect children and minors from gaining access to online casinos.
Impreveduto said the industry has to be regulated before it gets any worse. "Internet gambling is an unlicensed, unmonitored and unregulated industry," he said "It's the Wild, Wild Net and New Jersey consumers have no way to collect winnings and no way to block children from gambling on these sites."
Having trouble collecting winnings is a big problem for one Garden State resident who wasn't paid a $50,000 jackpot due to him. His lawyer, Thomas P. Lutz was present to show his support for the bill.
Also on hand were Pat Rogers and Nathan Damianos, a pair of software programmers who demonstrated an application, which they developed, that prevents children and problem gamblers from accessing sites in regulated areas.
"The technology is available and the need for online gambling protection are readily apparent," Impreveduto said. "What’s missing is the will to take positive action with respect to this new gaming industry."
Cohen feels that instituting a regulatory bill that enables existing Atlantic City casinos to open online branches will make the enforcement issue very easy for the state.
"By granting licenses to Atlantic City casinos for online gambling sites, New Jersey would make underage online gambling illegal by law," Cohen explained. "Residents would know that gambling at Atlantic City Internet site means that their money is in Atlantic City, not in an offshore and in-the-shadows account."
Supporters of the bill aren't expecting off-shore operators to try to setup shop in New Jersey; they feel if bettors have a choice between an off-shore operation and one that is affiliated with an Atlantic City casino, the choice will be simple.
"Online wagering has become a booming multi-million dollar business for entrepreneurs who have set up shop in off-shore locales far outside our traditional enforcement reach," Cohen said. "New Jersey needs to get in step with these changing trends and offer its residents a better, safer product."
Impreveduto also stressed that there's little the state can do when a resident has been wronged by off-shore operators who have free reign on how to run their sites.
"Right now, if there is a violation--either underage gambling or consumer rip off--it's a mystery who's to blame," said Impreveduto. "Granting an online license to regulate Atlantic City casinos takes the guess work out of accountability. Consumers know where their account is located and authorities know who to hold accountable if there is a problem."
Cohen added, "By pushing Atlantic City’s casinos into the future, the state can protect online gamblers from unmonitored fraud. It becomes very difficult for a bricks and mortar casino hotel to disappear when a consumer wins."
Cohen is hopeful that this bill will become law, but he's not taking anything for granted and is ready for a battle.
"The state can no longer sit back and allow off-shore Internet gambling companies to rip-off New Jersey residents and let underage gambling go unchecked," he said. "It’s time for the state to have a showdown at the Atlantic City Corral. And if I were the online gaming industry, I would put my money on a New Jersey operation being very competitive."