The law that allows online poker, blackjack and slot machines is expected to bring in $410 million the first year, H2 Gambling Capital estimated.
Revenue is expected to grow to $590 million in the ensuing years. New Jersey's take will be 15 percent of the revenue, The Wall Street Journal reported Wednesday.
The Journal said computers can verify whether or not the gambler is in the state or not. Gambling Web sites will have to be set up to monitor the location of participants.
Online gambling, which has had a rocky history with the U.S. Justice Department, is also allowed in Nevada and Delaware.
Last week, Gov. Brian Sandoval in Nevada signed a law that allows for the state to form gaming networks with other states to expand the pool of possible players.
"We have been at the forefront of online gaming here in Nevada. With New Jersey [about to legalize online gambling], the need for Nevada to act quickly has become even more important," Sandoval said last week.