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after the legislation. The New Jersey showdown could end up deciding what sorts of past transgressions will disqualify a company from handling online betting in the United States. Officials at acknowledged settlement talks but never signed. But unlike Pokerstars, they pulled out of the U. Those deals would let allow residents in one approved state play against people in another approved state, which would attract more bettors and increase the pressure on other states to allow their citizens to play. residents after Internet betting was explicitly barred by Congress in Prosecutors filed related criminal charges against several principals at the companies and temporarily seized their web sites. PokerStars, which authorities had alleged for years accepted bets from U. Party Digital Entertainment Plc and Holdings Plc, respectively. At least eight states enacted laws specifically banning Internet gambling, and every state bans gambling without a license, the trade group noted. On Wednesday, will go before the Nevada Gaming Control Board for a hearing on its suitability for an online license in conjunction with Caesars. The stakes in the battle increased dramatically this month with the passage of the New Jersey law and a revamped law in Nevada. casino industry has asked New Jersey regulators to bar a well-known online gambling company based in the British Isles from returning to the U. market prior to legalization, gaining online expertise that Las Vegas casino operators need. PokerStars and rival Full Tilt Poker, were the clear market leaders, operating from what they thought were safe havens abroad. A law signed in New Jersey last week allows companies with physical casinos in the state to offer online betting as well. But two years ago the Justice Department sued both firms for fraud, saying they used false billing codes to process wagers from U. A spokesman there did not return a call seeking comment. players after the In the meantime, MGM and Caesars are getting closer to making their own online offerings in partnership with PartyGaming owner Bwin.

CORRECTED-Casino trade group attacks bid by PokerStars to play in U. If approved, as expected, the two could begin accepting bets by the end of the year.

customers at a time when online gambling was illegal in the country, now hopes to operate in the United States, a prospect that alarms American Gaming Association members such as MGM Resorts International and Caesars Entertainment Corp, which have their own plans for online poker sites. Department of Justice giving states broad latitude on the matter. Three states, including Nevada and New Jersey, have legalized online gambling in the wake of a decision by the U. Delaware also allows in-state online gambling, but the Nevada and New Jersey laws both allow for the negotiation of interstate compacts. Both of those companies were also major participants in the U. The Gaming Association, which acknowledged it had never previously intervened in a state regulatory proceeding, noted in its filing that criminal charges are still pending against two fugitive former PokerStars officers, including founder Isai Scheinberg, whose son is the acting chief executive. If PokerStars were approved in New Jersey, that might allow it to effectively circumvent a Nevada law which bans companies that took bets from U. For years, U.