New Jersey Online Gambling the Capital of the World?

Just days before the New Jersey online gambling experiment goes live, the lawmaker responsible for pushing the issue in the first place is setting his sights on global gamblers. State Senator Raymond Lesniak plans to introduce a bill that would let international companies set up shop in New Jersey and then offer online gambling to people located outside the U.S.

The idea is to play on America’s reputation for financial security: Legal gambling operations headquartered in New Jersey would presumably appear less likely to make off with customers’ money or crumble under shifting regulations.

Lest he might fail to establish that he plans to make New Jersey’s laws as friendly to gambling companies as possible, Lesniak told reporters via a conference call on Thursday: “I didn’t come up with this proposal. Some of the gaming companies did because they want to come here.”

New Jersey’s interest in online gambling was never just about allowing its 9 million residents to play online poker against one another. Once the infrastructure is set up, New Jersey believes it can serve as a beachhead for a much wider market. Between the local and international licenses available under the online gambling law, New Jersey will create 16,000 to 22,000 jobs, according to a study done for Lesniak by Econsult Solutions.

Lesniak’s bill would also allow international companies with a physical presence in the state to take bets on sports from people in other countries—even though gambling is currently illegal in New Jersey itself. The lawmaker expects the bill to be passed next spring. Some unsettled issues remain, though.

You can read more about this story at Business Week.