A bit of a landmark day for online poker, as the State of New Jersey took a significant step toward establishing the first regulated online poker option in the US.

The bill, A2570 (S-490 was the Senate version, the bills are identical), would permit Atlantic City casinos to establish online versions of their gaming operations open to anyone living in New Jersey.

Reports indicating the bill would allow non-US residents to play at NJ licensed rooms are apparently incorrect – that language was from a now-outdated version of the bill.

Review history and read the full text of the bill here.

As predicted by bill sponsor Raymond Lesniak (D-Union), the initiative had little trouble obtaining passage by the State Assembly (63-11-2).

What’s Next?

The next step for the bill: Governor Christie’s desk. Will it pass? To the best of our knowledge, Christie hasn’t said one way or the other which way he’s leaning publicly, but the general sentiment seems to be that he’ll sign the bill. Christie has been outspoken regarding the need for severe economic policy in the face of the financial challenges facing the region, and it would likely be difficult for the Governor to pass up the opportunity online gambling represents – at least in theory – for the state.

“We are optimistic that Governor Chris Christie will sign this important piece of legislation into law to revive the state’s gaming industry. This law will allow our state’s gaming industry to thrive, creating more jobs and much needed tax revenue for the people of New Jersey,” said Anthony Singer, the president and CEO of High 5 Games, a gaming content supplier headquartered in New Jersey.

Read his whole statement here.

Atlantic City is facing a revenue downturn of historic proportions, having lost a reported third of its business since 2007. The state of New Jersey isn’t in any better shape at large, with looming deficits and a variety of fiscal and economic pressures that are certainly providing momentum for online gambling regulation.

Another key factor in Christie’s decision will no doubt be the fact that moving on regulation now gives the state a shot at establishing itself as the premiere online gambling regulatory body, a position that could be worth serious money and leverage should the USFG pass online gambling regulation at any point in the near future.

What if Christie Vetoes the Bill?

We’ll refer you to Chris Krafcik’s (writer for GamblingCompliance, among others) answer:

If Gov. Christie vetoes NJ I-gaming bill, each chamber of the Legislature will have to re-approve the bill by a two-thirds majority. Doable!

Follow Chris on Twitter for breaking info on regulatory issues.

What Would This Mean for Online Gambling?

New Jersey would not technically be the first state to regulate online gambling, as Nevada currently allows sports betting via mobile devices, but the scope of New Jersey’s proposal far outstrips that of Nevada’s current initiative.

Is New Jersey the first domino to fall in the establishment of a long string of state-based regulatory frameworks? Will the state be able to launch such an ambitious network while avoiding conflict with the Federal government? And how will online poker survive with such a limited pool of potential players?

Online poker players from New Jersey could be shut out of Full Tilt Poker and PokerStars if the bill passes; while the bill doesn’t explicitly criminalize unlicensed operators, it does leave regulation in the hands of the NJ Division of Gaming Enforcement, which has taken a dim view of the legality of internet gambling.

Should the DGE follow through on the bill’s directive to “adopt regulations for the implementation and conduct of Internet wagering that are consistent with regulations governing casino gambling generally” and explicitly exclude unlicensed operators from internet gambling, Stars and Full Tilt may decide (as they did in Washington State) to exit rather than operating in open defiance of US law.

Answers to those questions and more will no doubt emerge over the coming months. For regular updates on the state of online poker regulation in the US, check out our poker regulation news page.