Plans for a casino were rejected by the States last year
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Jersey and Alderney are set to go head-to-head in the fight for online gambling cash.
Jersey's gaming industry is limited mainly to betting offices, but last year the States said it would move towards legalising internet gambling.
Now Jersey is creating its own three-strong Gambling Commission to regulate the lucrative industry.
Alderney's Gambling Commission, which oversees 14 online gaming firms, netted more than �750,000 last year.
'Welcome development'
Chris Evans, managing director of Jersey-based e-commerce firm Foreshore, said a gambling commission was a "welcome development".
He said: "A number of companies from around the world have shown interest in establishing an internet gambling presence in Jersey, but have been put off because the necessary strong regulatory framework wasn't in place.
"This move will show that Jersey is indeed serious about entering the world gaming market."
Alderney, which has its own gambling commission, has already attracted many of the world's biggest online gambling operators.
Companies hold licences to operate in Alderney at a cost of �75,000 each.