New Jersey's legislature last year passed an account wagering bill that could have set the stage for legalized Internet wagering on horse races in the Garden State. Governor Christie Whitman vetoed the bill, and the NJ Racing Commission, prompted by an attorney general's opinion, is reminding operators of gambling websites that offering their services to New Jersey bettors is prohibited.
The Commission recently sent cease and desist letters to companies accepting Internet wagers from New Jersey bettors. The letters were spurred after the commission received an opinion letter from the state attorney general's office that such activity was in violation of state law.
One of the companies targeted in the order was You Bet!. The Commission took exception to You Bet! and other's systems of routing New Jersey bettors. The companies contracted to pick up signals and wagering information, including New Jersey races, from out-of-state simulcast outlets. They then provided these services to New Jersey residents, completing an end-run around the current prohibitions. Officials with You Bet! could not be reached for comment today.
Consequently, those residents who have grown accustomed to placing wagers from the comfort of their own home may now find themselves locked out of the system.
Some residents have already mounted protests, complaining that the state is instituting a ban on a "fundamental right" of citizens. While it is hard to argue with citizens who feel their rights have been infringed upon, the issue of online wagering on horse races has created quite a stir all over the United States.
Sectors of Congress feel there should be a national ban on all Internet wagering. Others in Congress feel that regulating the industry, rather than banning it, would be the best course of action. On the state level, a handful of states have already enacted online gambling bans. New Jersey and Nevada have been exceptions to the prohibitory trend, with legislators in both states preparing to introduce regulatory measures.
The pari-mutuel industry, of which horse racing is the biggest sector, has been seeking an exemption to any bill that would ban online gambling.
It is believed that the push to legalize Net betting in New Jersey would enable currently operating casinos in Atlantic City to operate online versions of their operations as long as the cyber casino is based in the same location of the land-based casino.
While the cease and desist order caught some in the industry by surprise, the Racing Commission may not stop there.
The Attorney General also gave a companion opinion to the online wagering issue. The companion opinion states that the use of phone accounts in New Jersey is not consistent with state law.
Out-of-state telephone betting account holders could be the next group of bettors to see their slips disappear.
In the meantime, the New Jersey racing industry will try to unite its efforts and get both off-track betting and phone wagering legislation passed. But, until solid legislation makes its way through Congress, account wagering of all kinds will be considered illegal.