Inside Asian Gaming

INSIDE ASIAN GAMING | March 2014 36 Off to a Flailing Start Growing pains are evident in New Jersey’s Internet gaming launch, but the case for a sizable market still holds By Charles Anderer FEATURE Y ou knew this wasn’t going to be easy. New Jersey’s Internet gaming launch—on which ride the hopes of Atlantic City in particular and the growth of US brick- and-mortar interactive gaming businesses generally—was marred by technical glitches, so-somarketing and weak revenue results.With all of that, the apparent strength of poker as a complimentary online business and the large numbers of sign-ups was enough to support the case for significant, statewide annual revenue projections that most place in the US$400 million to $500 million range. All told, online gaming accounted for $9.46 million in January, a 28% increase from December, the first full month residents and visitors could play online in the state. Borgata garnered the largest share, capturing 41% of the market with $3.9 milllion in revenue, followed by Caesars Entertainment with $3 million. The leading operator captured slightly more revenue from poker than from online casino games, which was one of many surprises, more bad than good. “It’s definitely disappointing,” Christopher Jones, managing director-senior gaming and lodging analyst at Telsey Advisory Group, said of the results. He talked to bwin, the partner for Boyd and Borgata, which characterized the challenges of the first month as threefold: continued issues with geolocation software; an inability to transfer funds; and the lack of a mobile wagering application that is actually viable.