Interesting comments made in a June podcast interview by New Jersey Division of Gaming Enforcement Director David Rebuck surfaced this week and make for interesting reading.
In a wide-ranging interview with Roger Gros, Rebuck revealed:
* Whilst the discussions on a player sharing compact with the United Kingdom have been abandoned (see previous InfoPowa report) New Jersey has reopened dialogue with Nevada and is eyeing possibilities with other states – notably Pennsylvania if legalisation there is ever achieved.
However, there are obstacles to such arrangements, not least that of where servers must be located under New Jersey state law, which stipulates that gaming servers that allow for the outcome of the game to be determined, must be located in Atlantic City.
Rebuck opined that if potential partner states or nations were not prepared to comply with that requirement, liquidity agreements could be difficult to achieve, unless legislative changes took place.
“If those states will not allow their gaming servers for online gaming to be here, we really are kind of stuck, unless there is a legislative change,” he said.
* Turning to reported complaints that New Jersey regulatory costs were high, Rebuck explained that his Division’s operating costs are currently $46 million annually – a significant reduction from 2010 when these costs reached $70 million.
He revealed that the DGE currently employs 280 people, 25 of whom are dedicated staff for online gambling oversight.
* Referring to the successful progress made by New Jerseys online sector, the director cautioned: “I believe at some point in time New Jersey’s going to tap out. When that is I don’t know. We’re on double digit year-over-year increase for 18 months now; can you sustain that forever? No of course not. But, what you need more than anything else is expansion, games or other jurisdictions.”
* The possibility that the US Supreme Court may agree with New Jersey’s argument that sports betting should be more widely legalised than in the four states permitted under the federal Professional and Amateur Sports Protection Act raises the prospect of online sports betting for New Jersey operators, Rebuck noted, observing that his state would definitely look to regulate online sports betting in the event of such a development.