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Web gambling bill nixed for 2nd time in N.J.

| Thursday, Feb. 7, 2013, 8:50 p.m.

ATLANTIC CITY — Gov. Chris Christie vetoed a bill on Thursday that would have made New Jersey the third state to legalize gambling over the Internet, but he said he would sign it if it had a 10-year trial period and a higher tax rate on casinos.

It was the second time since 2011 that the Republican governor has vetoed an Internet-betting bill passed by the New Jersey Legislature. But the path Christie laid out toward winning his approval heartened supporters of online gambling, including Atlantic City's 12 casinos, numerous online betting companies and state lawmakers who hope to make the seaside resort a nationwide hub for Internet gambling.

The parent company of PokerStars, the world's largest online poker website, which is buying The Atlantic Club Casino Hotel in Atlantic City, said it looks forward to completing the purchase of the struggling casino in a marketplace that allows Internet gambling.

“We welcome the definitive statements made today by Gov. Christie in seeking to place New Jersey at the forefront of Internet gaming in the United States,” said Eric Hollreiser, a spokesman for The Rational Group, based in Isle of Man. “We have consistently said that this bill will drive economic development and job creation in New Jersey and are committed to play our part in that process. The distinctive environment that I-Gaming can create for New Jersey is unprecedented, and we are pleased that Gov. Christie sees the significant benefits of mixing online and offline gaming.”

Michael Frawley, the Atlantic Club's president, said the eventual legalization of online gambling in New Jersey will make the state “the leader in what is certain to become a new gaming model.”

The Casino Association of New Jersey also welcomed Christie's comments.

“Our industry believes that Internet gaming is essential to the continued stabilization, development and success of Atlantic City through the generation of meaningful revenue, jobs and resultant tax revenues — objectives the governor has always facilitated,” association President Tony Rodio said.

Nevada and Delaware have passed laws legalizing Internet betting, which also is going on offshore, untaxed and unregulated.

In a statement that read more like an endorsement than a veto, Christie said he supports online gambling, with some minor changes, including bumping up the tax rate on casinos' online winnings from 10 percent to 15 percent.

“Now is the time for our state to move forward, again leading the way for the nation, by becoming one of the first states to permit Internet gaming,” Christie wrote.

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