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TRENTON Internet gambling is a step closer to reality in New Jersey after an Assembly panel this morning advanced legislation proponents say is critical to the survival of Atlantic City casinos.

The release of A2578 by the Assembly Regulatory Oversight and Gaming Committee sends the issue of internet gambling to the full Assembly for a potential vote before the state Legislature takes its summer recess in July. But the legislation and a companion bill in the Senate that already passed the committee phase, will most likely be taken up after the break in September, said Assemblyman John Burzichelli (D-Gloucester), a sponsor.

"This is another key piece of our effort to boost New Jersey's gaming industry by expanding and modernizing our wagering options," he said later in a release. "This will rejuvenate our tourist industry while increasing employment, capital investment and much needed urban redevelopment."

Only games offered in Atlantic City's casinos would be available online, according to the bill. Responding to Gov. Chris Christie's veto of an earlier version of the bill, A2578 prohibits commercial establishments such as restaurants and bar from hosting or advertising internet gambling. In rejecting the earlier bill, Christie said he wants to keep all forms of gambling inside Atlantic City.

Assemblyman Ralph Caputo (D-Essex) voted against the measure because he said he wants gambling expanded beyond the resort town and believes race tracks such as the Meadowlands and Monmouth Park should be allowed to host internet gaming rooms.

Caputo's rejection of the bill did not sit well with Enid Torok, vice chairwoman of the New Jersey Casino Revenue Fund Advisory Committee, which distributes a portion of the state's casino revenue to 18 programs for senior citizens and the disabled, such as Meals on Wheels.

She said many of these programs have limited or even stopped services because of the cut in funding from the shortage in casino revenue.

"This is gut level," she told Caputo. "We're dealing with real human beings here."

Caputo, a former Essex County freeholder, said he was concerned about the shortage to the programs but was turned off by casinos looking for a 'bail out' from the state. "So don't come here and scold me," he snapped at Torok.

Under this bill, the state would get 20 percent of the gross internet gambling revenue and the casinos would contribute another 5 percent to the Casino Reinvestment Development Authority.

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Internet gambling in N.J. rolls one step closer to reality