No Voter Referendum Needed for New Jersey Internet Gambling

TRENTON, N.J. (AP) In the race to be the first to approve Internet gambling and dominate a potentially multi-billion-dollar market New Jersey lawmakers heard what they wanted to hear Monday from a Seton Hall law professor and expert on the state constitution.

John Wefing told an Assembly panel he doesn't believe voters need to approve Internet gambling in order to make it legal. Wefing said existing law gives the Legislature and the governor the power to decide what forms of gambling are appropriate for Atlantic City. That authority, he said, came from a constitutional amendment passed by voters in 1976 that legalized casino gambling in New Jersey, and restricted it only to Atlantic City.

New Jersey wants to let its residents gamble online as long as they are within the state's borders. But Gov. Chris Christie vetoed a law last year that would have done so, citing concern about its constitutionality.

A key question is whether having the computer servers in Atlantic City would satisfy state law requiring all casino gambling to take place in Atlantic City.

"It is permissible to expand gambling in Atlantic City if the gambling is actually taking place in Atlantic City," Wefing testified.

Supporters note that the computer servers that actually process and accept bets would all be located in Atlantic City, either on casino property or in a remote location somewhere within the city limits. But in his veto message a year ago, Christie expressed doubts about the constitutionality of the bill and suggested voters decide the matter through a referendum.

On Monday, Christie said he could conceivably sign a bill approving Internet gambling without a referendum, as long as the state Attorney General's Office and other legal authorities he has consulted say it would be OK.

State Sen. Raymond Lesniak had predicted that both houses of the Legislature could approve an Internet gambling bill and send it to Christie's desk by Thursday. But Assemblyman John Burzichelli, sponsor of one of the bills, said that won't happen. Such a vote is at least a few weeks away, he said.

"We have a clash of technology and the constitution," he said. "In 1976, none of this was contemplated. And yet there's room to make it fit."

Lesniak said New Jersey can't afford to wait too long, noting the chairman of the Nevada Gaming Control Board has predicted his state could begin granting Internet poker licenses in that state in May or June, with companies having games up and running before the end of this year.

"It's extremely important we get going now, so as to be able to compete with other states for online gaming and generate those revenues for our casinos," Lesniak said.

"There is no need to amend our constitution since casino gaming was authorized under it," he said. "The Internet was not in existence at that time, and is merely a method of engaging in an already-authorized form of gambling. The legislation that requires that the Internet servers be located in Atlantic City satisfies the spirit of the constitutional requirement that casino gaming be allowed only in Atlantic City."

The Legislature is expected to take a big step toward a different expansion of casino gambling on Thursday when it considers bills that would permit casino patrons to use handheld gambling devices on casino property, including outdoor areas and swimming pools. The idea is to let patrons make bets and continue to gamble while relaxing outdoors, waiting for a restaurant reservation, or even reclining in their hotel rooms.