Inside Asian Gaming

INSIDE ASIAN GAMING | November 2013 34 Hope that New Jersey and Nevada could lead to a rapid growth in the number of states legalizing online gaming when legislatures re-convene in early 2014 are fuelled by the prospect of the two jurisdictions combining their respective online markets. “I think it’s likely that in 2014 we’ll see a compact between New Jersey and Nevada,” Jim Murren, chairman and CEO of MGM Resorts International, told Reuters after the company’s second quarter earnings call in early August. Suchacombinationcouldcome together fairly quickly, as long as the two jurisdictions keep it simple, said Mark Lipparelli, industry consultant and former chairman, Nevada Gaming Control Board. “The two markets have high licensing standards and everything starts from there,” said Mr Lipparelli. “If the two jurisdictions decide that it’s OK for patrons located within those states to play on each other’s sites, the first standard is will New Jersey accept a Nevada license and will Nevada accept a New Jersey license?” Presuming the answer is yes, the two states wouldn’t necessarily have to undertake a process that requires approved games to match up exactly. “I think what you’d have to do is notify the customer and say if you join in Nevada and play a New Jersey site, you’re playing a game that has been validated by the state of New Jersey and those games might have a different validation process than in Nevada. But you agree to that when you log on.” The questions that will come up are things like taxes, and that’s pretty simple as well, Mr Lipparelli said. If you’re a Nevada resident, you’ll pay the Nevada tax and vice versa for New Jersey residents. “If you’re Station Casinos and you open up in New Jersey, you will have to remit payment to the state of New Jersey,” he said. “In actuality, it becomes fairly straightforward and doable in 2014 as long as people don’t feel the need Back to the Future Nevada and New Jersey take the lead in developing the US online gaming market By Charles Anderer New Jersey officials and gaming executives hope online casino legalization will boost sagging Atlantic City fortunes. are on New Jersey, with its full-scale online gaming law and a population that approaches 9 million. The Garden Sate is working toward a target launch date of 23rd November, and long-term estimates are the market could generate anywhere from US$500 million to $1 billion annually, compared with the $30 million Nevada market presently. “Everyone feels that they need to be in New Jersey,” said John Kempf, managing director, equity and high yield research, RBC Capital Markets. “What people are saying is they need to be there so they can get involved in other states when they finally do approve online gaming.” I t’s starting to look like a case of history repeating itself. After many years of false starts, legal confusion, soaring hopes and dull resignation, the American online gaming market is set to finally take off, and it’s a pair of bellwether jurisdictions from the old days, Nevada and New Jersey, that are leading the way. Nevada’s first for-money online gaming site, Ultimate Poker, went live on 30thApril and dealt 14million hands in its first fourmonths of operation. But the potential of online gaming in the Silver State, with its smallish population of 2.7 million people and poker-only (for now) on the menu, is limited. That’s why all eyes FEATURES