Senator Ray Lesniak (l.) has addressed some of the objections cited by New Jersey Governor Chris Christie when he vetoed Lesniak?s intrastate online gaming bill last February. But he has left Christie?s biggest concern in the bill, which should guarantee another veto.
Governor Chris Christie has the advantage of being one of the most powerful governors in the United States by virtue of the statutory control he has over the state. So when he vetoed an online gaming bill sponsored by state Senator Ray Lesniak last February, he outlined extensively his objections to the bill.
Lesniak vowed to re-introduce the bill, which was passed overwhelmingly by the legislature and address all of Christie?s concerns. Those concerns included the legality of the bill as seen by the U.S. Department of Justice, the proliferation of online gambling parlors in New Jersey?s towns and counties, and several other issues. But Lesniak has decided to insist that revenue derived from the bill be designated to help the state?s struggling racing industry. This is a non-starter for Christie who ended a $30 million annual purse subsidy that the casino industry had been paying to racing interests. He also sold the two state-owned racetracks, getting the state out of the racing business.
Lesniak is undeterred, however. He believes that the state must assist the racing industry, saying the governor should ?lighten up? on the racing industry. He cites the recent shutdown of one of the state?s largest horse farms, Perretti Farms.
Lesniak wants to take some of the casinos? cut of online gaming revenue to subsidize the racing industry for five years. His previous bill had racing?s cut coming from the state?s percentage.
North Jersey Senator Paul Sarlo, a supporter of slot machines at racetracks, says the governor?s premise isn?t holding up.
?The governor claimed that privatizing Monmouth Park and the Meadowlands Racetrack would result in increased self-sufficiency for the horse racing industry,? said Sarlo. ?If that's the case, why is the reputable Perretti Farms bailing out??
Lesniak is also not accepting another Christie objection, which was to let the people decide if they wanted online gaming in the state. Lesniak says it isn?t necessary and the legislature can make that choice. Polls show that a majority of New Jersey voters would not approve online gaming.
But Christie isn?t buying the bill?s stipulation that the actual gambling takes place on a server located in Atlantic City.
?Internet wagering in this state shall be deemed to take place where a casino?s server is located in Atlantic City regardless of the player?s physical location within this state,? says the bill.
Christie believes that the wagering is taking place at the site of the player, which requires a statewide referendum to allow gambling outside of Atlantic City.
It?s an argument that casinos may support since they insist that any proposal to allow slots at racetracks would also require a statewide referendum.
The bill also designates online gaming as a legally authorized game, getting around another constitutional hurdle. Lesniak says the governor is being too tentative in his approval of the measure.
?I believe we should be aggressive in pursuing job growth and additional revenues in Atlantic City. We shouldn?t be shrinking violets,? Lesniak told the Atlantic City Press. ?The governor has never been a shrinking violet in the past, and I don?t think he should be one on this issue either.?
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