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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. Delaware also allows in-state online gambling, but the Nevada and New Jersey laws both allow for the negotiation of interstate compacts. The stakes in the battle increased dramatically this month with the passage of the New Jersey law and a revamped law in Nevada. 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. Prosecutors filed related criminal charges against several principals at the companies and temporarily seized their web sites. 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. But two years ago the Justice Department sued both firms for fraud, saying they used false billing codes to process wagers from U. On Wednesday, will go before the Nevada Gaming Control Board for a hearing on its suitability for an online license in conjunction with Caesars. Three states, including Nevada and New Jersey, have legalized online gambling in the wake of a decision by the U. United States. Directory of sites. A poker player stacks chips during a poker tournament in a casino in Las Vegas, Nevada, November 8, {/INSERTKEYS}{/PARAGRAPH} Business News. This story corrects paragraph three to clarify that authorities had alleged the company had accepted bets in violation of U. PokerStars and rival Full Tilt Poker, were the clear market leaders, operating from what they thought were safe havens abroad. Discover Thomson Reuters. Editing by Jonathan Weber and Matt Driskill. {PARAGRAPH}{INSERTKEYS}A law signed in New Jersey last week allows companies with physical casinos in the state to offer online betting as well. A spokesman there did not return a call seeking comment. At least eight states enacted laws specifically banning Internet gambling, and every state bans gambling without a license, the trade group noted. Officials at acknowledged settlement talks but never signed. Joseph Menn. Both of those companies were also major participants in 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. PokerStars, which authorities had alleged for years accepted bets from U. But unlike Pokerstars, they pulled out of the U. If approved, as expected, the two could begin accepting bets by the end of the year. The New Jersey commission is expected to hold a hearing on the dispute next week. Department of Justice giving states broad latitude on the matter. Reporting by Joseph Menn.