Governor nixes online gambling

TRENTON, N.J. - New Jersey Gov. Chris Christie vetoed a billThursday that would have made his state the first in the nation tolegalize Internet gambling.

At a news conference before the decision was announced, Christiesaid he was wrestling with "legal and constitutional concerns."

Joseph Brennan Jr., chairman of a group called iMEGA, theInteractive Media Entertainment & Gaming Association, whichrepresents offshore Internet betting websites, said Christie raisedvalid concerns that were not addressed in the legislation.

"My understanding is the governor is concerned about hotels orbars setting up Internet cafes," he said. "He also has concernsabout youth participation in gambling and making sure only stateresidents are able to participate. He's concerned that some placesmay put together eight computers and set up a de facto back-roomgambling hall that wouldn't be monitored or regulated."

Brennan said the online gambling industry wants and welcomesstrict regulation, and said a new version of the bill could beintroduced as early as next week.

Christie's office said a veto message would be released Thursdayafternoon setting out the governor's reasons for rejecting the bill.

Deputy Assembly Speaker John Burzichelli, a south JerseyDemocrat, said he would work to perfect legislation for onlinegambling.

"I understand this is a complicated issue that raises many legalquestions," he said. "Still, the reality is that Internet gaming iscoming and we need to figure out a way to make it work to benefitAtlantic City casinos."

The Legislature had passed a bill authorizing Atlantic City's 11casinos to set up computer servers and equipment capable ofreceiving and paying out bets from New Jersey residents. A sectionthat would have let people outside the U.S. play was scrapped.

If Christie had signed the bill, it could have touched off anonline gold rush, with cash-strapped states rushing to approve theirown Internet betting bills. New Jersey would have taxed Internetbetting revenue at 23 percent, nearly three times the rate thecasinos pay on their winnings.

And despite the veto, many other states are considering passingsimilar laws.