Christie says he has "legal and constitutional concerns."
The Legislature had passed a bill authorizing Atlantic City's 11 casinos to set up computer servers and equipment capable of receiving and paying out bets from New Jersey residents. A section that would have let people outside the U.S. play was scrapped.
If Christie had signed the bill, it could have touched off an online gold rush, with cash-strapped states rushing to approve their own Internet betting bills. New Jersey would have taxed Internet betting revenue at 23 percent, nearly three times the rate the casinos pay on their winnings.