His decision Thursday marked the second time since 2011 that the Republican governor has vetoed an Internet bill passed by New Jersey's legislature.
Christie wants the state to review online gambling after 10 years. He also wants the casinos' tax rate on Internet winnings raised to 15 percent, up from 10 percent.
Supporters, including Atlantic City's 12 casinos, say allowing patrons to gamble online would have brought much-needed new revenue to the gambling halls and tax money to the state.
So far, Nevada and Delaware have legalized Internet gambling.