Governor Christie?s conditional veto of the online gaming bill has online poker buffs celebrating and advocate state Sen. Ray Lesniak predicting approval in ?a matter of weeks.? The tax goes from 10 percent to 15 percent in Christie?s version, almost double the 8 percent of brick-and-mortar casinos, and there is a 10-year sunset clause to allow the legislature to revisit the idea.
UPDATING with the Governor?s press release:
?Recognizing the value and potential of internet gaming to support his Administration?s efforts to revitalize Atlantic City, Governor Chris Christie today put forward a balanced proposal to support the implementation of internet gaming in New Jersey in a careful, measured and responsible way. Governor Christie concludes that now is the right time for the state to move forward and again lead the nation by becoming one of the first states to permit Internet gaming, but only with the right limitations and protections.
?This bill represents an important policy decision for the residents of New Jersey, and a historic opportunity to continue the State?s leadership as a premiere destination for tourism and entertainment. Such a significant step must be carefully considered, balancing the benefits of job creation, economic development, and the continued revitalization of Atlantic City against the risks of addiction, corruption and improper influence. It is my duty as Governor to make these determinations, always mindful of my duty to guarantee the continued welfare of our families, our neighbors, and the future generations who will call our State home,? said Governor Christie.
The Governor?s proposal, contained in his conditional veto of Assembly Bill 2578, recommends critical, but commonsense safeguards to limit risks of gambling addiction, corruption and improper influence while fostering benefits of job creation and continued economic development and revitalization of Atlantic City.
?My proposal continues the tradition in New Jersey of a fine, careful, and well-regulated implementation of gaming. With these changes, we will increase resources to treat compulsive gambling, provide sensible safeguards to ensure careful oversight and a proper annual review of the implementation of internet gaming, along with a 10-year sunset for future leaders to carefully reevaluate internet gaming as a state policy broadly and critical transparency measures to guard against undue and improper influence and self-dealing,? continued the Governor.
To accomplish these competing interests and societal protections, Governor Christie?s conditional veto of Assembly Bill 2578 recommends:
? Extending existing prohibitions on casino-related employment and representation for state employees and Legislators to Internet gaming licensees and their promoters and affiliates.
? Establishing a sensible requirement that state elected officials promptly disclose their past and present representations of entities seeking or holding Internet gaming licenses.
? An enhanced level of funding for compulsive gambling treatment programs and additional financial support for other beneficial purposes for which casino gaming was originally authorized.
In his conditional veto, the Governor gave great weight to concerns over the potential spread of excessive gambling. ?Our State cannot carelessly create a new generation of addicted gamers, sitting in their homes, using laptops or iPads, gambling their salaries and their futures,? he said. To protect against such a proliferation of gambling addiction, the Governor further proposes the requirement of an annual analysis of the potential harms associated with these new games to be undertaken at the expense of the gaming licensees. Furthermore, he recommends that Internet gaming and its societal impact should be studied and periodically revisited. To that end, he proposes that the law sunset after a period of 10 years, giving future policy-makers the opportunity to revise and renew the law if appropriate.
The Governor?s careful adoption of an Internet gaming law comes in the context and builds upon his efforts to revive Atlantic City, protect and grow its tourism base and create jobs. Since the start of his Administration, the Governor confronted the complex challenges threatening Atlantic City?s unrivaled combination of natural seaside beauty, world-class attractions and easy access from around the world. One of his earliest acts as Governor was to establish an Advisory Commission on Gaming, Sports and Entertainment to study issues and develop a comprehensive approach to preserving Atlantic City?s stature as a premiere resort destination. Among the results of those efforts was the establishment of a Tourism District with a comprehensive initiative to address blight and public safety.
The Tourism District Law led to a $30 million marketing plan and the realignment of State gaming agencies to minimize bureaucracy while enhancing oversight. Also in 2011, the Governor signed a second bill into law enacting the most comprehensive overhaul of the State?s casino regulations since 1977. This reform eliminated many significantly outdated regulators burdens, allowing the casino industry to reinvest and redevelop throughout the Tourism District.
A-2578/S-1565 was sponsored by Senators Ray Lesniak (D-Union) and Jim Whelan (D-Atlantic) and Assemblymembers John Burzichelli (D-Cumberland, Gloucester and Salem), Vincent Prieto (D-Bergen and Hudson), and Ruben Ramos (D-Hudson).
???.
and the more formal version sent to the legislature:
?Pursuant to Article V, Section I, Paragraph 14 of the New
Jersey Constitution, I am returning Assembly Bill No. 2577
(First Reprint) with my recommendations for reconsideration.
For generations, Atlantic City was a prolific engine that
drove economic growth in our State and generated significant
revenues to support critical programs throughout New Jersey.
While Atlantic City?s reputation and stature as one of the
premier resort destinations on the East Coast are wellchronicled,
it is no secret that revenue from the region?s most
important industries, gaming and tourism, has been in decline.
Since the beginning of my Administration, I have stressed the
importance of reversing the trend of economic contraction in
Atlantic City and have made the revitalization of the region?s
gaming and tourism industries a key priority.
In furtherance of my commitment to these critically
important industries, I signed landmark legislation in February
of 2011 establishing the Atlantic City Tourism District. This
law, the product of a joint effort between my Administration and
the Legislature, sought to enhance tourism in Atlantic City by
empowering the Casino Reinvestment Development Authority
(?CRDA?) to coordinate the marketing efforts of the casino
industry, implement public safety initiatives in Atlantic City,
and make critical investments in both gaming and non-gaming
amenities in the region. The law also reorganized several State
entities and authorities with tourism related duties and
responsibilities in order to promote efficiency and achieve
greater synergies between such entities.
2
While some of the provisions set forth in this legislation
would serve to advance the important goals of the 2011 Tourism
District law, others are at cross-purposes with the law?s
underlying objectives. Without question, one of the keys to
success in Atlantic City lies with giving the CRDA the tools it
needs to effectively implement the State?s reform agenda.
Toward that end, and consistent with the provisions of the
Tourism District law, I firmly believe that the CRDA needs
significant flexibility and freedom from burdensome,
bureaucratic, and overly restrictive State mandates.
Regrettably, some provisions of this bill fail to recognize that
goal and would serve to tie the hands of the very agency that
the Legislature and I entrusted and empowered to carry out the
difficult task of revitalization in Atlantic City.
For instance, the bill proposes to restrict the CRDA?s
ability to manage its workforce by statutorily establishing
conditions of employment affecting persons transferred to the
CRDA by operation of the Tourism District law. Likewise, the
bill mandates that certain other actions be taken by the CRDA,
such as assessing fees upon certain casino licensees and
establishing noise standards within the Tourism District. While
such agency action may be appropriate and warranted, the 2011
Tourism District law aptly recognizes the CRDA as the
appropriate entity to make such determinations.
We have made great strides in establishing the framework
for sustainable, long-term economic growth and revitalization in
Atlantic City. By increasing red-tape and bureaucracy in the
State?s oversight of the gaming and tourism industries, as
proposed in this bill, we run the risk of hindering the progress
we have made so far.?
Christie vetoed a somewhat similar measure in 2011, and has repeatedly expressed his ambivalence about the wisdom of allowing the new betting ? legalized so far only by Nevada and Delaware and not yet implemented in any state. The state Constitutional deadline was noon today.
The bill has drawn national attention, both for the possibility that a New Jersey law opens the floodgates for other states to follow suit, and with speculation on what impact the decision could have on Christie?s prospects should he eventually run for President in 2016.
The New Jersey bill is similar to the Delaware law in potentially allowing all casino games to be played online, while Nevada?s law allows only online poker.
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