UIGEA Back in the News
With the casino business of Atlantic City taking a beating over the tough economic times the New Jersey Government has become the first state to seriously explore online gambling (poker) revenue. Senator Raymond Lesniak introduced the S3167 Senate Bill that would permit Atlantic CIty Casinos to provide online versions of their games. Permitted games would be BLackjakc, Baccarat and of course, online poker.
The New Jersey Casino Control Commission would be the regulatory body for the new iniative under a new division of Internet Wagering. Anyone is able to set up their own online gambling site, but for the with the costs involved only major Atlantic City Casino’s are expected to take advantage of the new proposed laws.
How Much Will It Cost?
Up Front Fee $200,000
Non-Refundable Deposit $100,000
Yearly Renewal $100,000
Problem Gambling Levey $100,000
Benifits
There are barrieres to setting up this type of business, but with little overhead and approx. 500,000 online poker players in New Jersey alone this could be a huge win for online gambling, and for Atlantic City Casinos. Giving it a chance could showcase the amount of revenue that the states have been denying themselves (Senator Lesniak estimates $100 million), as well as profiting from a higher tax rate on online gambling revenue (20% instead of the 8% on gross revenue currently incured by brick-and-mortar profits).
Drawbacks
The new regulations would allow for anyone to play online poker and gambling games, provided they were in a “restricted area of a casino hotel or a secure facility off the premises of the casino hotel.” Terminals would also be placed at racetracks. Sadly, not all New Jersey residents will be able to get their hands on legal online poker, should the bill pass. The law only applies to those people “within the territorial limits of the Atlantic County.”
