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.