The New Jersey Senate Government, Wagering, Tourism and Historic Preservation Committee has approved a bill that would allow foreign online gambling operators to base their operations in Atlantic City.
The measure, which was sponsored by state Senator Raymond Lesniak, would allow foreign firms to partner with Atlantic City casinos, locate there, and offer online gambling in countries where online gambling is legal. The bill would not allow the companies to offer online gambling to New Jersey residents, however.
The companies would be taxed at 15 percent of revenues, the same as New Jersey online sites. Proponents hope New Jersey’s reputation for tough regulatory approval will be attractive to foreign firms looking for legitimacy to build consumer confidence in their sites.
“This could help make New Jersey the leader in online gaming, across the country and around the world,” said Lesniak in a statement. “We could be the Silicon Valley for high-tech gaming. We should take advantage of this dynamic opportunity for a business sector with enormous growth potential.”
During the hearing, the committee heard testimony that a key part of the legislation would require internet gaming payment processors to go through New Jersey’s stringent licensure process. Testimony from financial experts said the state needs to improve its licensing of payment processors both for the state’s internal sites and potential foreign operators to breed more trust from banks and other credit card issuers.
The banking industry has been reluctant to process gambling transactions in the state since online gambling went live in November, hampering the industry.
The bill now goes to the state Senate Budget and Appropriations Committee.
In a related matter, the New Jersey State Assembly has approved a bill that would allow gamblers to ban themselves from casinos or gambling websites without having to admit they have a problem.
The state’s voluntary self-exclusion lists permit people to sign up and request that they not be admitted to casinos or allowed to gamble online. But the law currently requires them to attest that they have a gambling problem.
Advocates of the bill say removing the admission of a problem will take away some of the stigma of signing up for the list.
The bill, passed by a 77-0 vote and now goes to the state Senate.
