1. New Jersey America's first regulated i-Gaming Market ? Joe Brennan Jr. Chairman IMEGA Washington, DC

2. iMEGA ➢ US business association ➢ 501(c)6 not-for-profit ➢ “Chamber of Commerce” ➢ I-Gaming industry in the US ➢ Litigation ➢ Legislation

3. What happened: iMEGA@work ➢ Partner with Sen. Raymond J. Lesniak ➢ Retain Princeton Public Affairs Sports betting ➢ Litigation in federal court (PASPA) ➢ Referendum legislation i-Gaming ➢ Constitutional assessment ➢ Drafting the legislation ➢ Committee process

4. The Process: From Draft to Law ➢ Initial contact ➢ Assessment ➢ Resources ➢ Champions ➢ Allies & opponents ➢ Obstacles ➢ Wild cards ➢ Committee to the floor ➢ Executive's desk ➢ Regulators

5. Factors ➢ Public polling ➢ Economic development study ➢ Ground game ➢ Committee & NJ Gaming Summits ➢ State Racing Industry ➢ North & South ➢ Atlantic City casinos ➢ Harrah's/Caesar's ➢ Federal legislation

6. Where we are today ➢ Sports betting bill: passed 36-to-3 margin in Senate 55-to-17 margin in Assembly ➢ On ballot for Nov. 2011 ➢ “Vote YES” campaign: kickoff Spring 2011 ➢ State i-Gaming bill: passed 34-to-2 margin in Senate 63-11-3 margin in Assembly ➢ Gov. Christie – 45 days ➢ Sign, veto, conditional veto, sit

7. Gov. Chris Christie Sign Veto Conditionally veto Leave on desk Politics Racing industry Atlantic City Budget Wild cards

8. And if it becomes law? ➢ What games will be allowed? ➢ Who can offer them? ➢ To whom will they be offered? ➢ What we may expect other states to do? ➢ What does this means for federal bills?

9. Taxes First five years ➢ 8% gross Internet wagering revenue tax ➢ 30% alternative investment tax**** After five years/one year of sports betting ➢ 8% gross Internet wagering revenue tax ➢ 10% alternative investment tax

10. iMEGA - next steps ➢ Draft of NJ i-Gaming regulations ➢ Push back against “hijacking” ➢ New association for i-Gaming ➢ American Internet & Mobile Gaming Assoc ➢ IMEGA to focus on sports & litigation ➢ Next states ➢ Federal government

11. PASPA - the next challenge ➢ Litigation ➢ Referendum ➢ Other states ➢ Federal government ➢ Leagues