WASHINGTON — Online gambling in New Jersey has grown to become a $350 million business since the federal government gave its OK eight years ago.

But President Donald Trump’s Justice Department last month reversed that ruling, and state officials fear that a decision could threaten a growing piece of the gambling pie.

“This unexpected opinion from the U.S. Department of Justice not only jeopardizes the future of our casinos and gaming industry, but also threatens the jobs of thousands of New Jerseyans," Gov. Phil Murphy said.

Attorney General Gurbir Grebal and Pennsylvania Attorney General Josh Shapiro expressed their concerns in a letter sent Tuesday to Acting U.S. Attorney General Matthew Whitaker.

“This about-face is wrong and raises significant concerns in our states,” the attorneys general wrote. “We ask that DOJ withdraw its opinion altogether or assure us that DOJ will not bring any enforcement actions against companies and individuals engaged in online gaming in our states — where it is appropriate under state law.”

The Justice Department did not immediately respond to a request for comment.

Online gambling produces $352.7 million in annual revenue and $60 million in taxes, state officials said. It has helped boost the fortunes of the remaining Atlantic City casinos after some closed their doors.

“For five years, our gaming industry and our regulators have relied on the Justice Department’s promises to develop a strong online gaming industry that generates hundreds of millions of dollars, and is key to Atlantic City’s vitality," Grewal said. “With the stroke of a pen, the Justice Department is trying to take that all away.”

In their letter, Grebal and Shapiro expressed concern that the new interpretation was so broad as to also jeopardize multistate lottery games such as Powerball and Mega Millions.

The agency announced in January that it was reversing its position and ruled that the Wire Act banned all online gambling. President Barack Obama’s Justice Department concluded just the opposite in 2011, paving the way for New Jersey-based casinos to offer online gambling to state residents.

That was the position sought by a major Republican campaign donor. Sheldon Adelson, chairman and chief executive officer of Las Vegas Sands, and his wife Miriam spent more than $122 million during the 2018 midterm elections on behalf of Republican candidates. That was more than any other outside spender, according to the Center for Responsive Politics, a Washington-based research group.

The Adelsons in October also gave $500,000 to a legal defense fund set up to help Trump aides caught up in Special Counsel Robert Mueller’s investigation into whether the president’s campaign committee colluded with Russia, Internal Revenue Service filings show.

The following month, Trump gave Miriam Adelson the Presidential Medal of Freedom, the nation’s highest civilian honor.

Grewal said he filed a Freedom of Information Act request with the Justice Department asking for all communications on the Wire Act involving Adelson or his lobbyists.

“Nothing changed in the years since the Justice Department allowed online gaming to move forward, and there was no good reason for the Justice Department to rethink its prior decision,” Grewal said. "We want to know who Justice Department officials spoke with and why they decided to change their minds.”

Senate Judiciary Committee Chairman Lindsey Graham, R-S.C., praised the new ruling. He has introduced legislation to ban online gambling.

“Restoring the original interpretation of the Wire Act takes great strides to protect children and society’s most vulnerable," Graham said. "It will also be a blow to criminal elements that tried to take advantage of the failed Obama policy.”

Jonathan D. Salant may be reached at jsalant@njadvancemedia.com. Follow him on Twitter @JDSalant or on Facebook. Find NJ.com Politics on Facebook.

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