When New Jersey approved and regulated online poker, it was generally thought that if expansion occurred, it would involve intrastate poker with Nevada and other states. But New Jersey State Senator Ray Lesniak isn’t waiting around for this because he’s introduced an amended bill that would allow NJ poker sites to offer services “to persons located outside of New Jersey or the United States.”
If the amended and re-written bill is approved by the State assembly, it would enable the New Jersey Division of Gaming Enforcement to issue foreign online poker permits to casinos and their affiliated partners. Aside from an issued permit, casinos would also need “an interstate or foreign compact or agreement with an interstate or foreign jurisdiction in which Internet wagering on authorized games is lawful and regulated.”
Any foreign poker dealings would maintain the same tax rate (15%) and Casino Reinvestment Development Authority payment (2.5%) that sites are currently required to pay in New Jersey. The taxes that online poker rooms are required to pay foreign jurisdictions would be counted as a tax credit in New Jersey.
This last point would give New Jersey online poker sites a distinct advantage over operators in countries like France, Italy and Spain, where the poker taxation rate is pretty high. France is especially bad because sites are subject to a 33% corporate tax rate, which has caused some sites to close down or exit the market.
It’s very interesting to hear that there’s a chance New Jersey could be offering internet poker to people in other countries. Lesniak was instrumental in convincing the state House and Senate to approve regulated online poker. Now, he’s at the forefront of the amended bill, which would give NJ poker rooms an even bigger boost. Of course, a lot needs to happen between now and then before it’s a reality. But with several sites having foreign roots like PartyPoker (Borgata) and 888 (Caesars Interactive), there’s likely to be some heavy lobbying for this bill to pass.