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Gov. Christie Signs Internet Gambling Bill Into Law (page 2)

New Jersey Becomes Third State To Offer Online Gambling
Online Gambling (file/credit: KAREN BLEIER/AFP/Getty Images)

Online Gambling (file/credit: KAREN BLEIER/AFP/Getty Images)

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They conceivably could even gamble through social media sites, as long as the sites worked with casinos who have an online gambling license, Lesniak said.

The casinos would utilize software programs that would, among other things, seek to verify that a person is at least 21 years old. Ted Friedman, CEO of Secure Trading, a Delaware Internet payment processor, said his firm’s software validates player information, including age, against multiple public and private databases.

It also uses authentication tools that will ask the player a series of multiple choice questions that only the specific player would know the answer to. Based on the identity checks and answers provided, an algorithm is run to determine the confidence level that the player is who they say they are and are of legal age.

The bill would allow gamblers in other states to place bets in New Jersey as long as regulators determine such activity is not prohibited by federal or any state’s law. It even has provisions for allowing people in other countries to play, although federal law would have to be changed before that could happen, Lesniak said.

The third time was the charm for online gambling in New Jersey. The legislature had passed two previous versions of the bill, only to see Christie veto them.

Christie vetoed New Jersey’s first attempt at Internet gambling in March 2011, citing concerns about its constitutionality and worrying about the proliferation of illegal back-room Internet betting parlors that would be difficult to find and prosecute. A second bill tried to address those concerns by providing hefty fines for anyone who runs or even advertises such a back-room betting parlor.

But Christie still wasn’t done objecting, noting in his Feb. 7 veto message that he had been torn over whether to expand gambling in New Jersey to such an extent. His two biggest requested changes were having Internet gambling reviewed by the state after 10 years to see how well it was working, and increasing the tax rate on the casinos’ online winnings from 10 percent to 15 percent.

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