A new bill to bring internet gambling to New Jersey has raised concerns among some in the Atlantic City casino industry, who fear it could lead to expanded gaming options at the racetracks.

The tracks have long clamored for video lottery terminals to help them to stay afloat. Opposition from Atlantic City has been strenuous, and the resort's 11 casinos have paid the tracks more than $140 million over six years to keep them from adding VLTs. An additional $30 million will be paid to the racetracks this year, the final year of the moratorium agreement.

The bill, sponsored by Democratic Senator Ray Lesniak, would require that internet gambling equipment be based in an Atlantic City casino or "within the territorial limits of Atlantic County." But the state Casino Control Commission could also allow racetracks to have internet gambling terminals, which may be "identical in appearance to slot machines located at casinos," the bill says.

Under the proposed legislation, the horse industry would also get a cut of any revenues generated by a 20 percent annual state tax on internet gambling.

If the bill becomes law, New Jersey will be the first state to legalize cyber-gambling, which is currently banned in the United States. But other states including Nevada, Florida and California are also working to introduce the wagers.

Attitudes are softening toward internet gambling. In 2006, U.S. banks were ordered to block credit and debit cards from paying online gambling companies. But U.S. Rep. Barney Frank of Massachusetts now supports the legalization and regulation of the practice. Along with U.S. Rep. Jim McDermott of Washington State, he introduced legislation in 2009 that would set up a federal-state framework allowing the practice and enforcing taxation. A 2009 report from the Joint Committee on Taxation says tax and licensing revenues from internet gambling could bring in nearly $42 billion over 10 years.

Lesniak thinks the games would help, not hurt, Atlantic City, which has suffered double-digit revenue declines since Pennsylvania introduced its first slot parlors in 2006.

"It would be a big boost to the casino industry in Atlantic City," Lesniak told the Atlantic City Press. "It's a bold move, and in this economy we need bold moves."

Studies have indicated that U.S. gamblers already spend more than $100 billion annually on internet gambling.

By NBC 40 WMGM

http://www.nbc40.net