Online gaming legal experts have predicted for some time that New Jersey will be the first U.S. state to regulate the online gambling industry. This prediction gained strength earlier this year when a bill proposing that Atlantic City land based casinos should be allowed to offer online gambling services was passed by the State Senate Wagering, Tourism & Historic Preservation Committee. It appears though that a wrench has been thrown in the state's plans by an unexpected source. For one reason or another The Casino Association of New Jersey (CANJ) has gone on record stating that they are against the S490 passing.

CANJ which represents all of the land based casinos of Atlantic City recently wrote a letter to John Burzichelli, the chairman of the Regulatory Oversight and Gaming Committee in the Assembly, asking the committee to defeat the bill or at least postpone it until the Attorney General can provide further guidance on its legislation. The letter states that the casinos wish to provide online gambling services but that they would prefer that the federal government take the first steps towards its legalization and not the state government.

CANJ also stated that the casinos feel that if they began to provide online gambling that it could tarnish that city's status as a destination resort. Many industry experts including Frank Catania however disagree with this notion. He says that the Internet currently caters to a different demographic and that if the casinos offered online gambling they would be able to draw a younger crowd to the land casinos and actually increase their business.

Catania also expressed his view that this move to derail S490 will not succeed. He points to the past for proof that CANJ is incapable of stalling gaming legislation as they have failed a number of times in the past. He says that New Jersey's current legislative session ends at the end of 2011 and that legislators will work hard to get the bill passed through the Senate and through the Assembly before the term is up.

In any case it appears that things will not turn out the way everyone was hoping for.

More details as things develop.