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Wednesday, 05/01/2013 10:23:29 AM

Wednesday, May 01, 2013 10:23:29 AM

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On the warpath?

New Jersey Internet Gambling Worries Tribes: ReportSome In California Concerned About Widespread Legalization
by Brian Pempus | Published: Apr 29, 2013 | E-mail Author



The Press of Atlantic City reported Sunday that the New Jersey legalization of Internet gambling has caused some tribes, most notably those in California, to grow increasingly concerned. One of the key issues surrounding the fledgling United States industry is how to give the tribes a piece of the action and make the commercial firms happy as well.

That point was one of the reasons why a federal bill never came into fruition. However, states are looking to legalize on their own. So far, Nevada, Delaware and New Jersey have all legalized. California has not, but some there are still trying.

“[Tribes are] worried about what comes after New Jersey,” Joe Brennan Jr., director of the Interactive Media Entertainment and Gaming Association told Press of Atlantic City. “While tribal gaming doesn’t have a footprint in New Jersey, they do have in other jurisdictions.”

“Online gaming is a slippery slope, and putting at risk a multimillion-dollar industry, the associated jobs and the revenue interests to impacted states, without safeguards, is a gamble no one should be willing to take,” Robert Smith, chairman of the California Tribal Business Alliance, reportedly said in a statement before New Jersey legalization.

Under the New Jersey law, other states could partner up with it to create larger player pools for online poker. However, California, for example, might not have any intentions of making a deal with another state if and when it ever legalizes web poker. The state has more than 37 million people. New Jersey has about 8.8 million.

The issue with California’s road to legalization has centered on how to find a compromise among the tribes and how outside firms could be let in on the action.

New Jersey regulators are currently hashing out rules for the Garden State’s industry.

For more on the story, check out the reporting from Press of Atlantic City.