New Jersey senator moves to protect state online gambling industry from federal interference

New Jersey state Senator Jim Whelan, a long-time supporter of online gambling, has moved to protect the state’s flourishing online gambling industry by introducing a resolution calling on Congress and the current US administration to “oppose any actions that would prohibit states to conduct Internet gaming.”

Whelan’s SJR 102 complements a similar Assembly resolution, AJR 137, filed by Assemblyman Vincent Mazzeo earlier this year (see previous report) and marshals state legislature support for a unified front against federal interference in a state matter.

Whilst not having the force of law, a resolution approved by a state legislature represents a clear position that federal officials would be unwise to ignore.

There have been concerns that the Trump Administration’s newly appointed US Attorney General Jeff Sessions may negatively review the Department of Justice 2011 opinion that only online sports betting is covered by the 1961 Wire Act, which does not apply to online casino and poker activity.

Whelan’s resolution has been lodged with the Senate State Government, Wagering, Tourism & Historic Preservation Committee, where Whelan has strong support from at least six co-sponsors for his resolution, hopefully ensuring it will achieve rapid progress.

In his resolution Whelan notes that recent measures in the US Congress (a reference to Sheldon Adelson’s notorious Restoration of America’s Wire Act) if pursued and supported by the president, would invalidate New Jersey’s implementation of Internet gaming, which the State authorized in 2013 to be conducted by Atlantic City casinos in partnership with their Internet gaming affiliates and under strict regulation and control by the State’s Division of Gaming Enforcement.

“In his confirmation hearing as nominee for United States Attorney General, Senator Jeff Sessions indicated his desire to revisit the federal Justice Department ruling that currently allows the states to authorize Internet gaming.” Whelan continues, pointing out that such measures have the potential to impact New Jersey’s online gambling industry and the substantial investments that have been committed to it, creating job losses, reducing tax benefits to the state and resulting in damage to the state economy.

Mazzeo’s Assembly counterpart to Whelan’s bill has already made it out of the Assembly Tourism, Gaming and the Arts Committee, its first hurdle, and was progressed at the end of January.