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Surprising Lack of Support

The state of New Jersey has taken an interesting turn this week as the Attorney General for this very pro-gambling state announced his resistance and lack of support for a fully regulated and federally licensed online casino gambling industry. New Jersey is one of the first states to welcome in a licensed intrastate gambling industry and yet Attorney General Greg Zoeller announced that he is not supporting the two online casino gambling bills currently in Congress and written by Congressmen Barney Frank and Jim McDermott. Frank and McDermott have two bills in place that are designed to repeal the UIGEA and instead put in a taxed and federally regulated infrastructure for the internet gambling sites.

What’s interesting is the fact that the US states only recently found the loophole in the federal ban on offshore online casinos that subsequently allows state governments to offer intrastate internet gambling and thus make all of the tax profits straight into the state budgets. The UIGEA was designed to completely stop US internet gambling but has only really created a black market of the internet gambling industry and also put the regulation and control over the domestic industry into the hands of the state governments – which is right where Zoeller wants the control.

There is a huge debate rampant right now about who has the Constitutional authority to regulate the online casinos. The US States assert that they have long had the right to fully decide the internet gambling issue for themselves and it should stay that way. On the other hand, federal legislation would still give each state the right to block internet gambling but would also create a safer gambling environment for the states that are interested in embracing both domestic and offshore online gambling.