In 2011, the U.S. Department of Justice determined that the Federal Wire Act does not preclude states from adopting online gambling. And it didn’t take long for states to capitalize.
With the severe decline in revenue from live casinos, New Jersey launched online gambling last year, which has been met with much concern and criticism.
While online gambling sites are doing well and producing additional income, the Coalition to Stop Internet Gambling has been extremely vocal in their protest of the New Jersey launch. The coalition has some influential supporters such as Sheldon Adelson and former New York Governor George Pataki. One of the many concerns, which is duly noted in a highly publicized letter from the FBI, is that online gambling could be used for money laundering.
The coalition has reached out to attorneys general around the nation, asking for their support in shutting down and banning online gambling. However, there are advocates on both sides of the fence. The Poker Players Alliance supports online gambling, and is taking to social media to have supporters across the nation lobby their lawmakers and top state officials in support of New Jersey’s online gambling.
New Jersey’s online gambling industry launched in late November generated around $8.4 million dollars through the end of 2013. This is approximately 10% of the state’s gambling income for the same timeframe.
This battle is likely to go on for many months or years to come for any state that exercises their “legal right” to adopt online gambling. That being said, 26% of gamblers say they prefer to continue live gambling and another 35% aren’t comfortable gambling online. However, this leaves a large percentage that is still open to the idea.
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