Gambling internet site AWI

Opponents of the Nevada bill include state Senator Terry Care, who argues that the $500,000 two-year licence fee for Internet gambling threatens smaller businesses.

"What this is asking us to do, is to legislatively sanction a monopoly for an exclusive few," Mr Care said.

But Senate Judiciary Chairman Mark James said the fee ensured that only reputable companies took part.

The great joy and curse of the internet is that it is available to everybody everywhere.

Nevada would have to bar participation by children and people from states that ban gambling.

New Jersey had tried to beat Nevada in the gambling cyberspace race but its Internet betting bill, which was introduced in January, has still to be passed into law.