Zynga to face legal challenges if they leave Facebook and pursue online gambling

Casino Watch Focus reported that online social media giant Facebook was looking into online gambling.  Their partnerships with other developers like Zynga has provided an infrastructure for dealing with payments that could translate to real money gambling.  Casino Watch Focus then reported that developer Zynga was seriously considering entering the online gambling arena as well given they have a similar infrastructure and already offer free versions of gambling games like Poker.  Now, a online legal source is reporting that such a move will be met with serious legal hurdles:

Zynga Inc. is thinking about making a big bet on gambling, a step that analysts say could help end its dependence on Facebook Inc. It certainly won’t end its dependence on legal counsel. The technology may be simple, but lawyers say the company probably isn’t prepared for the intricate maze of regulations it will have to navigate to cash in on the action. Add to that the exhaustive financial and background checks Zynga executives and some shareholders might have to endure, and the company’s legal department is facing a huge undertaking.

I think they may be underestimating the difficulties they are going to face,” said Whittier Law School professor I. Nelson Rose, an expert on gambling law. “I know even European gaming operators are always surprised when they find out how invasive the U.S. regulators are in trying to find out everything.”

And if and when Zynga does start offering online gambling, dealing with compliance related to issues such as money laundering will have to become a top priority for its legal department, and that will likely mean hiring more in-house counsel. Many regulated gaming companies have substantial internal legal departments, Dayanim said. But whatever route Zynga decides to take, it will be new territory for all involved. “We haven’t seen a situation anywhere where a social gaming company has moved into the gambling space,” Dayanim said. “I can’t think of any company that has done it.”

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Zynga Looks to Use Facebook and Social Media Gaming to Incorporate Online Gambling

Casino Watch Focus reported that  Facebook was looking into online gambling in markets where online gambling is legal.  The tie into gambling stems from Facebook utilizing an online monetary system in the form of credits.  Those credits are usable in games or other various items from developers.  One of Facebook’s larger developers, Zynga, who also develops for various mobile platforms, has taken note of the possibilities of a recent Obama Administration ruling, that allows online gambling. An online source explains:

Zynga Inc. (ZNGA) Chief Executive Mark Pincus said Wednesday he sees “mind blowing” possibilities for weaving real-money gambling into social games pending regulatory changes in the U.S., and suggested the company may partner with a traditional casino company before the end of this year.

“We’re definitely talking to all of the players that you would suspect,” Pincus said, adding, “We have incredible respect and admiration for brands and groups like the Wynn… I would expect that you’ll see a lot of these players kind of figure out their go-to-market partnerships for sure before the end of this year.”

Pincus noted that real money gaming would be a natural fit for Zynga, which already draws tens of millions of players to its Zynga Poker game.  Unlike current games such as Zynga Poker, real money gambling games would involve more than just virtual currency that cannot be converted into cash.

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Obama Administration Ruling Allows Online Gambling

Casino Watch Focus reported that several states have been attempting to legalize online gambling in their own jurisdiction.  Even though many states were attempting to legalize such intrastate gambling, it was generally understood that a long legal battle would develop.  The current online gambling landscape is largely governed by the Unlawful Internet Gambling Enforcement Act (UGEIA).  It regulates interstate and intrastate gambling at the financial level.  Given the almost impossible nature of regulating the internet, UGEIA looked to enforce the issue by going after the financial institutions where the gambling money would trade hands.

The basis for UGEIA is the 1961 Wire Act, which prohibits gambling over telecommunications systems.  This act effectively prohibited almost all online gambling, on both an inter and intrastate level.  Now, The Christian Science Monitor is explaining that a common Justice Department ruling on the Wire Act has been reversed by the Obama Administration, allowing for at least intrastate gambling and possibly even gambling between states:

Until now, the Justice Department had held that the Wire Act makes even intrastate online gambling illegal. Its new interpretation, written by Justice Department attorneys in response to requests for clarification from New York and Illinois, concluded that the law instead specifically outlaws such wagering on sports, not nonsports gambling within states or even across state borders.

“The ordinary meaning of the phrase ‘sporting event or contest’ does not encompass lotteries,” wrote Assistant Attorney General Virginia Seitz. “Accordingly, we conclude that the proposed lotteries are not within the prohibitions of the Wire Act.”

“The United States Department of Justice has given the online gaming community a big, big present,” writes I. Nelson Rose, a Whittier Law School professor who blogs at gamblingandthelaw.com. “My bet is that … Congress will continue to do nothing, while Internet gambling explodes across the nation, made legal under state laws.”

While the Justice Department ruling does not specifically address interstate gambling, legal experts say it’s likely to be allowed, at least between states that specifically regulate online gambling.

There are a multitude of concerns with the actions of the Obama Administration’s new ruling.  In an Op-Ed piece by the Christian Science Monitor, they argue that such actions amount to a tax on the poor and that the regulation issues will be too severe to offer anything other than potential harms to children and families:

[B]ig doubts remain over whether states can indeed restrain such digital games of chance to residents while also keeping children from playing them. State lotteries, for examples, have a poor record of preventing retailers from selling tickets to minors.

And even if states can outsmart tech-savvy teens or out-of-state gamblers, once enough states jump into Internet gambling they will likely be able to work together and create a national scheme for such activity. That would violate the spirit if not the letter of a 2006 federal law banning such interstate activity.

Most of all, bringing Internet gambling to America would hurt the poor, who are most affected when people lose money in government-approved games of chance such as state lotteries or casinos – not to mention the way it would reinforce a belief that one’s future depends on “luck” instead of individual merit.

In effect, President Obama and his appointed Justice officials have bowed to political pressure from states that seek a new source of revenue in Internet gambling rather than taking the difficult decisions to raise taxes or cut spending.

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Facebook to Test Real-Money Online Gambling in UK; the Lure of Children Amongst Real-Fears

Casino Watch Focus originally reported that Facebook banned online advertisements in the United States and other jurisdictions where online gambling is illegal.  Where as it might appear Facebook was taking a hard line stance against gambling, new reports may prove otherwise.  Currently, Facebook uses a virtual money system for several of their games/apps.  A user can purchase credits that can then be used in the virtual setting for the purchase of games or items from various developers.  The online Tech Site ZDNet, reported that Facebook is now considering replacing their virtual money system with real money. The move is designed to open the doors to full scale online gambling on Facebook.  ZDNet explains:

Facebook already offers a virtual currency option known as Facebook Credits, which is used extensively in Facebook apps like social games, but the social networking giant is also reportedly interested in supporting the exchange of real money in the online gambling market. The company wants to open up the Facebook Platform to online gambling, possibly as soon as in Q1 2012. This past summer, Palo Alto held exploratory talks with approximately 20 online gaming experts, consultants, and social gaming entrepreneurs, and now it’s moving forward.

More specifically, Facebook is looking at handing out eight licenses, two per vertical, to the online gambling operators in regulated markets such as the UK, according to EGR. The company has drawn up initial licenses for different gambling operators: Gamesys, which has some 1.7 million monthly Facebook users and 888 are reportedly first in line. You read that right: gambling apps could soon start appearing on the Facebook Platform.

Its worth noting that Facebook is only looking to begin testing in the UK and if they find success, then they would  likely branch out to other countries where its legal to gamble online (which would currently exclude the United States).  As one could imagine, Facebook’s actions are drawing the ire of those in the UK concerned with the most vulnerable – their children.  The UK Daily Mail explains:

Facebook is being accused of luring children into gambling through plans to introduce real cash games. The world’s biggest social network site wants to use Britain as a testing ground for games that would let users gamble on virtual fruit machines, bingo, poker and roulette. Last night  critics expressed fears that the proposals will create a generation who believe that gambling is safe and fun.

More than 3million Facebook users in the UK are aged between 13 and 17. A further million are estimated to be under 13 but pretending to be older.  Dr Robert Lefever, founding director of the Promis Recovery Centre which treats addicts, said: ‘Introducing gambling to Facebook is a cynical way for the gambling industry to find new markets, making gambling look acceptable. ‘There will be young people who think these games have Facebook approval, that you can gamble and it’s fun. It’s not – gambling destroys families.’

Lauri Moyle, of Christian Action Research Education (CARE), said: ‘Because there is a link between the age when people start gambling and the likelihood of developing a difficulty controlling their gambling, protecting children from the normalisation of gambling is vital.’

Professor Mark Griffiths, of Nottingham Trent University, added: ‘Even when no money changes hands, young children are learning the mechanics of gambling. These games can be a gateway to more serious gambling.’

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Washington D.C. online poker bill passage to come under investigation

Casino Watch Focus reported  that Washington D.C. joined the race to become the first jurisdiction to legalize online poker.  It was further reported that they passed their bill and planned to be open for business in September.  However, the D.C. Lottery stepped in and delayed to process to allow for citizen input.  Now, an online source is reporting that they are going one step farther and investigation the entire process by which the bill was passed:

When your government doesn’t even trust its own politicians there has to be something wrong in Denmark! It seems that some are upset over the way the online poker bill was passed in Washington D.C. earlier this year and now Councilman Jack Evans is calling for an investigation into what he calls the “Sneaky passage” of the legalization bill for the D.C. district.  There is currently an ongoing investigation being conducted by the Inspector General of the D.C. lottery contract award,

Councilman Evans chairs the Committee on Finance and Revenue and is planning to hold a meeting that’s open to the public about the D.C. lottery contract award and he is hoping the gambling bill will also be added. The gambling bill passed because there was a deadline for Congress to reject the bill, but all heads were concentrating on the fiscal budget and the deficit so the gambling bill for intrastate gaming in D.C. passed because of failure to reject.

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Lenders factoring in Online Gambling in the Mortgage Process

Casino Watch Focus has repeatedly reported on the impacts of online gambling. Most stories have centered on the legal battles to keep online gambling illegal.  However, online gambling stories are now reaching far beyond the political fights as illustrated by the report of Facebook changing their gambling advertising policies. Now, an online source is reporting that social networking isn’t the only industry to look at online gambling, as banks are now factoring in such activities into their mortgage approval process:

Anyone looking to become approved for a mortgage may want to curb their betting habits. It has been reported that lenders are now taking into account betting transactions that are made on an applicants bank account. The most common form of these transactions is online gambling sites.

One of the reasons that financial institutions look into the gambling activity, according to Chief Executive of Mortgage Debt Advisory Firm Negotiate Trevor Grant, is that most people coming looking for a loan, should be tightening their extraneous spending. Gambling, says Grant, is considered to be a red flag that the applicant may not have self control.

The banking industry isn’t just looking at new mortgages either.  Lenders are being especially hard on those looking to refinance or restructure their loans.  Lenders view refinancing as a sign the borrow is having trouble paying and managing their finances and online gambling expenses are then being viewed as a poor allocation of the borrows money.

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Facebook to Ban Online Gambling Advertisements in US

Casino Watch Focus has reported on many of the ongoing online gambling battles both locally and abroad.  Most reports have focused on which states were entertaining legalizing online poker, but others have looked at the impact of national laws on international companies. A new international company to look at revamping their business practices due to national online gambling laws is Facebook.  An online source is reporting that Facebook is banning online gambling advertisements in jurisdictions that make online gambling illegal:

Recently, Facebook has started to clamp down on different forms of advertising. Online gambling is one of those areas addressed in the most recent update. One site that will be prohibited from advertising on Facebook will be Full Tilt Poker. The company recently lost their gaming license in Alderney after falling behind on payments. The online poker site also has closed its doors to customers since Black Friday in the US, when executives for the site were indicted. Other online poker sites, including PokerStars, will be allowed to advertise on Facebook.

One of the clarifications that Facebook has made regarding their online gambling advertising, is the company can only promote their product outside the US. The US has online gambling prohibition in place, and Facebook is ensuring they are not promoting something that the government deems illegal.

The Internet gambling laws in the US could change in the coming months with many lawmakers pushing a bill that would regulate online poker. If online poker became regulated in the country, Facebook would likely change their advertising policies once again to allow companies to promote their online poker sites to US citizens.   

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UPDATE: Washington DC Online Gambling to be delayed

Casino Watch Focus reported  that while many states were evaluating and pushing the idea of online gambling in there specific jurisdictions, Washington DC was the first to pass a bill and select a date to go live.  Their push to legalize didn’t come with out outspoken opposition and controversy.  Now, an online source is reporting that the DC Lottery is planning to delay the launch to allow for citizens’ input:

Opponents of a new online casino site in Washington D.C. were pleased on Monday when the D.C. Lottery announced that it would be delaying the launch of the online casino. The delay, according to city council members, is for time to gain public input on the controversial issue.

“It could be October, it could be November, it could be next year,” said council member Jack Evans, in response to when the online casino will finally be launched. Other council members believed that later this year was the more probable date for the start of regulated online gambling in the city.

The DC Lottery is planning to hold a series of forums for people on both side of the issue to voice their opinion and learn about the proposed online site.  Its unclear if they are simply stalling in hopes of a Federal online gambling bill to pass, or if they are actually wanting to gather feedback from the people.

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Washington DC to allow online poker in September

Casino Watch Focus reported  that several states were in a race to be the first to legalize online poker.  New Jersey was the first to pass a bill to legalize it, but then the Governor vetoed the bill.  California considered full online gambling, but as an online source reported, California decided to partner with  PlayTech to provide online gaming, but it will only allow people to play for free, not for actual money.  They are laying the foundation for a possible change in federal policy that has effectively made online gaming illegal. Washington D.C. joined the mix and passed a measure to allow online gambling back in April.  Now, a different online source, is now reporting that they plan to go live with their online poker bill in September, but there is a catch:

Washington, D.C. will begin allowing poker players to play with real cash online beginning in September.  There’s one catch.  They’ll have to be in Washington, D.C. to play.

The District of Columbia is in the midst of rolling out the first legalized online poker room in the US.  It will be overseen by the D.C. Lottery and is considered a precursor to other states such as California and Florida jumping into the fray.  Nevada’s Governor signed a bill into law allowing Web poker in his state but the law only kicks into effect when similar legislation is passed on the federal level.

Congress did not object to the District’s efforts during its 30-day review period of the law, though legality issues remain unclear especially in light of recent federal crackdowns. 

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Another Congressional session, another attempt to legalize online gambling

Casino Watch Focus has reported  many times of the failed attempt by both the U.S. Senate and the House of Representatives to legalize online gambling.  Each legislative session has ended with the same rules in place which effectively make gambling online illegal, and each subsequent legislative session begins with some attempts to legalize online gambling.  Now, an online source is reporting that several new attempts are in the works, including one to legalize online poker with an option for each state to opt out:

U.S. Rep. Joe Barton, R-Texas, is drafting legislation that would legalize Internet poker, a spokesperson tells Digital Transactions News. “This is a poker-only bill,” the spokesperson says.  Some Capitol Hill publications speculated that Barton would introduce his bill as early as this week, but that won’t happen, his spokesperson says. Barton is still lining up co-sponsors and working on the language.

Last week, U.S. Rep. Jim McDermott, D-Wash., introduced the Internet Gambling Regulation and Tax Enforcement Act of 2011, H.R. 2230, which would set up procedures to collect taxes from legal online wagering. McDermott’s two cosponsors are U.S. Reps. John Campbell, R-Calif., and Barney Frank, D-Mass., who in March introduced their

Internet Gambling, Regulation, Consumer Protection, and Enforcement Act. That bill, H.R. 1174, would legalize online gambling except sports betting and have the U.S. Treasury Department regulate it. H.R. 1174 is identical to a measure the two offered in the last session of Congress that failed, according to a spokesperson for the Safe and Secure Internet Gambling Initiative, a pro-wagering lobbying group.

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A Brief Look at Crime 05/23– 05/29

Area Man Pleads

Attorney General Chris Koster said that Jason Dean, former district administrator of the Putnam County Ambulance District, has pled guilty to felony stealing following an investigation by the Highway Patrol and the Missouri Attorney General’s office. Dean entered his plea before Putnam County Judge Jack Peace. Koster said Dean, 44, was responsible for handling the ambulance district’s finances. In 2005, Dean began using the district’s emergency debit card to gamble at area casinos and used its general funds to pay for his family’s insurance premiums.He admitted that between 2005 and 2010 he stole $41,227 from the ambulance district. He was able to conceal the theft for years until an audit uncovered discrepancies. At the time of the thefts, Dean also was a Putnam County deputy sheriff.

 Feds take down Philadelphia reputed mob boss

The reputed boss of the Philadelphia mob, his alleged lieutenant and 11 others were hit with federal racketeering and gambling charges in an indictment unsealed Monday that federal authorities said shows that violent organized crime remains a real-life menace. Alleged mob leader Joseph “Uncle Joe” Ligambi, reputed underboss Joseph “Mousie” Massimino and the others ran illegal gambling operations and engaged in loan sharking, according to the 70-page indictment that described a “Godfather”-like world in which reputed mobsters used threats to kill or harm people to recoup business debts. Eleven people, including Ligambi, were arrested Monday. The other two defendants were already in federal custody.      

 Ill. man pleads guilty in NYC Internet poker case

A Chicago man pleaded guilty to conspiracy charges Monday, admitting that he helped Internet poker companies find banks to process millions of dollars in gambling proceeds even though he knew it was illegal. Bradley Franzen, 41, also signed a cooperation agreement, agreeing to testify if necessary at any trial to result from a government prosecution that has already caused the three largest online poker companies to shut down their U.S. operations. Franzen was one of 11 people charged last month in the probe. He pleaded guilty in U.S. District Court in Manhattan to conspiracy to commit bank fraud, accepting funds in connection with illegal gambling and conspiracy to commit money laundering.      

 US Continues Online Gambling Crackdown With Site Seizures

When the US government cracked down on Internet gambling last month by issuing an indictment against PokerStars, Full Tilt Poker, and Absolute Poker, many analysts took the indictment as a scare tactic. On Monday, the government again showed that they meant business with this first indictment. The previous indictment came down against online gambling sites and executives that actively sought to deceive US banks. On Monday, the Department of Justice showed that they can also use undercover operations to capture what they consider to be criminals within the Internet gambling industry. The latest legal trouble for online gambling sites came when the US government shut down popular online poker sites such as Bookmaker.com, Betmaker.com, and Doylesroom.com.

 Woman Admits Stealing Aunt’s Life Savings 

A woman from Kingston accused of taking more than $100,000 from her elderly aunt was back in court Monday in an attempt to reach a plea settlement. After Louise Olenik suffered a stroke, her niece, Marisa Harlen, was put in charge of her finances.  Police said instead of taking care of Olenik, Harlen treated herself to trips to the casino and a vacation to the Bahamas.  In fact, police said, Harlen stole more than $100,000. A family member said that was Olenik’s life savings.

RUC man jailed for murder of Belfast pensioner

A former police inspector is beginning an 18-year prison sentence for the  murder of and theft from a south Belfast pensioner more than 20 years ago. Kenneth Mark McConnell (59), from Prospect Downs, Carrickfergus, was a  compulsive gambler at the time he murdered Annabella Symington (77) in 1989. He had gone to her Stranmillis home to ask to borrow money, but when she  refused he suffocated her with the sleeve of her own cardigan and stole cash  from her purse. He was caught in 2010 after a reinvestigation into the case found his DNA in  fingernail clippings taken during the post-mortem examination. Yesterday at Belfast Crown Court McConnell was sentenced to serve a minimum of  18 years for the murder of Mrs Symington, and 12 months for the theft of  £200 from her house.

Ex-officer in N.J. postal workers union gets 20 months for conspiring to embezzle funds

Former secretary-treasurer of a New Jersey division of the American Postal Workers International Union was sentenced today to 20 months in prison for conspiring to embezzle funds from the union’s accounts in a case that has dragged on for more than five years.  John McGovern, 55, of Hawthorne pleaded guilty in November before U.S. District Faith S. Hochberg, admitting that he and a former union president conspired to embezzle between $120,000 and $200,000 in union funds.  In court today, Hochberg also sentenced McGovern to pay $783,931 in restitution — $583,931 to the union and $200,000 to a fidelity and deposit company in Maryland. But at the same time, the judge, looking dismayed, pointed out that there was basically no chance the money would ever be repaid. “It’s gambled away,” Hochberg said, referring to allegations that McGovern went on gambling sprees in Atlantic City with money he stole. “I assume there’s nothing left of it.”

3 men sentenced in shooting at Nebraska rodeo arena over gambling debt over boxing match

Three men have been sentenced in a shooting in western Nebraska that authorities say happened over a gambling bet in a televised boxing match.  KNOP-TV in North Platte says Jose Sosa-Florez was sentenced Monday in Lincoln County to 5 to 10 year in prison for causing serious bodily injury with a deadly weapon.  He pleaded no contest in March. Two brothers, Ezequiel Rodriguez-Serrano and Sergio Rodriguez-Serrano, pleaded no contest to terrorist threats. They were sentenced to 225 days in jail and given credit for time served.  They are in the U.S. illegally and will be deported.

 Major sports betting ring busted in NYC

Authorities in New York City have busted a major online sports betting ring, arresting 28 people in three states and seizing $5.7 million in assets.  Staten Island District Attorney Daniel Donovan said Tuesday raids were executed in New York, New Jersey and Pennsylvania following a two-year, multi-law enforcement investigation.  He says the operation ran out of a Staten Island strip mall. The DA says the ringleader, 56-year-old Joseph Stentella, allegedly had customers betting on horse races, football, basketball, hockey and mixed martial arts fights. He was charged with enterprise corruption, promoting gambling and money laundering.

 Accountant gambles away stolen millions

An Auckland accountant who gambled away $5 million he stole from his employer has been sent to prison. Richard Watson used that money over 10 years to fund a $50 million gambling habit at Auckland’s Sky City Casino, and ended up in the red.  Now questions are being asked about why Sky City never asked any questions about his gambling. Watson was a trusted and highly paid employee at a company which manufactures roof tiles. He had worked there for 32 years, but in his last 10 he began stealing from his employer – The Ross Group – taking more than $5 million. “In all likelihood it would have continued beyond that, had it not been for the fact that in March 2010 it was indicated to you that the company was going to carry out an audit,” Judge Charles Blackie said in closing today.

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UPDATE: Florida Senate Committee stops efforts to legalize local online poker rooms

Casino Watch Focus reported that  a bill had been introduced to allow online poker rooms at horse and dog tracks and other pari-mutuel locations.  The idea was to contract with three online poker companies to run the rooms and take a cut of each poker pot, know as a rake.  Now, an online source is reporting that the bill has been stopped in committee:

An attempt to regulate the burgeoning internet poker empire and start collecting state taxes from it died Tuesday when the Senate Criminal Justice Committee killed the bill with a 2-2 tie vote.

“This is really the ultimate convenience gambling,” said Frank Messersmith, lobbyist for the Florida Sheriff’s Association. “It provides anonynmity in your home with no peer pressure, no social interaction.” He called it “internet crack” that is particularly enticing to young males and will not stop the offshore gambling.

“This is a form of digital escape to the anti-social people and it just opens all types of doors that we think is too opportune for people to be caught up in gambling,” he said.

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Washington DC joins the race to be the first to legalize Online Poker

Casino Watch Focus reported that the New Jersey legislature was the first to pass a measure to legalize online poker.  Many States waited to see if the bill would be vetoed or be passed and face numerous legal hurdles.  That question was answered when New Jersey Gov. Christie vetoed the bill, leaving the legal questions and the race to be the first open.  Now, the Wall Street Journal is reporting that Washington DC has joined the discussion:

Washington, D.C., is poised to become the first place in the U.S. to allow online poker, challenging the federal government’s effective ban on the practice in its own backyard.

The city council approved a budget last year allowing the district’s lottery to operate a poker website accessible only inside district boundaries. City officials say the window for Congress to raise objections to the law was due to expire Thursday, allowing it to take effect.

Opening the district to online gambling could make the nation’s capital the  first test case for “intrastate” online poker, which allows only players within a state—or the district—to gamble on a site.

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New Online Gambling Bill Filed – Identical to other past failed attempts

Casino Watch Focus reported that U.S. Rep. Barney Frank’s desire to regulate online gambling was all but shut down after the midterm elections.  Then, a last minute effort was made by Senate Majority Leader Harry Reid, but Casino Watch Focus reported that he was unsuccessful at his attempt to attach the pro-gambling bill to sure-to-pass legislation during the lame duck session.  Now, an online source is reporting that Rep. Frank is attempting to legalize gambling again, this time teamed up with Republican John Campbell:

Congressman John Campbell (R-CA) along with Congressman Barney Frank (D-MA) introduced today The Internet Gambling Regulation, Consumer Protection, and Enforcement Act.

The legislation comes in response to the enactment of Unlawful Internet Gambling Enforcement Act (UIGEA), which restricted the use of the payments system for Americans who gamble online.

“The bill is identical to H.R. 2267 that was passed out of the House  Financial Services Committee on July 28, 2010 with bi-partisan support.”

Time will tell if this next attempt to legalize online gambling will end in failure like its predecessors.  Some bi-partisan support was not enough in the past, and with no reports of a greater level of bi-partisan support, it will interesting to see what this bill’s supporters plan to do to truly make it different than years past.

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UPDATE: New Jersey Governor Vetos Online Gambling Bill

Casino Watch Focus reported that the New Jersey legislature passed a bill that legalized state online gambling.  The bill needed to be signed by the Governor to be considered law and while some thought the political pressure from his party would lead to a veto, others believed his pro-gambling stance might be enough to see the bill become law.  However, The Wall Street Journal reported that the Governor Christie vetoed the bill citing several concerns:

In the veto message, Christie said he had a number of “significant concerns” with the legislation. He rejected the theory that by placing servers in Atlantic City, the bill would satisfy constitutional requirements.

“In my view, the creation of a legal fiction deeming all wagers to have ‘originated’ in Atlantic City cannot overcome the clear and unambiguous language of the State Constitution,” he said in the veto.

Voters approved Atlantic City gambling in 1976, two years after rejecting statewide gambling. Christie said he worried the bill would expand gambling “in a manner that is contrary to the public’s sentiment” to gambling.

The Governor’s decision and rationale for veto will set a very important precedent for other states such as Florida, California, Iowa and even Missouri, all of whom have considered similar legislation and all of whom have constitutional limits as to where gambling can take place.  Time will tell if these or other states move forward with plans to legalize online gambling, but at least one Governor has decided to put his people and their state constitution over the harmful effects of such widespread gambling availability.

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