New Jersey Gov. Chris Christie

New Jersey Gov. Chris Christie

AP Photo

NJ Governor Says 'No' to Internet Gambling

New Jersey's governor has vetoed legislation authorizing Internet gambling.

Republican New Jersey Gov. Chris Christie March 3 vetoed a bill that would have made the state the first in the nation to legalize Internet gambling on something other than pari-mutuel horse racing.

Christie said he has "legal and constitutional concerns" with Internet gambling.

The state legislature had passed a bill authorizing Atlantic City's 11 casinos to set up computer servers and equipment capable of receiving and paying out bets from New Jersey residents. A section that would have let people outside the United States play was scrapped.

If Christie had signed the bill, it could have touched off an online gold rush, with cash-strapped states rushing to approve their own Internet betting bills. New Jersey would have taxed Internet betting revenue at 23%, nearly three times the rate the casinos pay on their winnings.

New Jersey racetracks offer advance deposit wagering through the Internet on a system used only by state residents. It is the only form on online betting legal under federal law.