Inside Asian Gaming

JUNE 2015 inside asian gaming 33 Online Gaming Whatever the reasons, the slow startup for New Jersey online gaming has caused a bit of a shakeout within the market. Two of the Atlantic City operators originally offering online gaming, Trump Taj Mahal and Trump Plaza, have since closed their sites. It also seems the New Jersey doldrums have not had any lasting effect on jurisdictions seeking to join the Internet gaming pool. Pennsylvania lawmakers are reportedly weighing an Internet gaming bill to help fill a projected budget hole. Pennsylvania State Capitol Although these sites combined to generate only $122 million in revenue for 2014, that number is not terribly out of line with the more modest estimates made for the market by entities other than the state of New Jersey, which was extrapolated from a Wells Fargo Securities report describing how big the market could eventually become. Gambling Data had predicted $235 million in gaming revenue for the first year of New Jersey online gaming operations. Econsult predicted $210 million. Eilers Research said the market would be at $228 million in revenue when it matured in three years. In the prism of these predictions, the first-year take of $122 million doesn’t appear terrifically out of line. Further good news can be found in this year’s revenue statistics, which showed year-over-year growth in both December 2014 (22.8%) and January 2015 (22.3%), according to various reports. This uptick in results can partially be credited to needed improvements made to online gaming platforms. The Division of Gaming Enforcement reports geolocation issues have been resolved, and the technology currently boasts a 98% success rate. A new credit card code has also been created for New Jersey online gaming which is expected to go into effect soon and should substantially lower credit card rejection rates. Internet-friendly payment processing companies such as Neteller have also been recently licensed, which should further aid player payment processing. The state has also created a special online seal to help players distinguish between licensed and unlicensed online casinos. New Jersey has also started negotiations with established online gaming jurisdictions to boost the player pool. “An important area for the future of Internet gaming is interstate/international compacts,” says Mr Rebuck. “This type of cooperation between jurisdictions is very important for building liquidity in peer-to-peer games such as poker… The Division has been in discussions with other jurisdictions, such as Nevada and the United Kingdom, but no compacts have been entered to date. The Division is open to discussions in this area and always seeks to ensure that any agreements are most beneficial to New Jersey’s Internet gaming industry.” Another positive sign is the continued interest in joining New Jersey’s online gaming marketplace. Resorts Atlantic City, the oldest of the state’s eight remaining casinos, beta launched its online gaming site two months ago. A few months earlier, Pala Interactive, a subsidiary of the Pala Band of Mission Indians, which owns and operates the Pala Casino Spa and Resort in California, launched palacasino.com with Borgata acting as host, becoming the first gaming tribe to enter the New Jersey online marketplace. Jim Ryan, CEO of Pala Interactive, told NorthNewJersey.com that he believes the online market will double to $240 million in yearly revenue once it matures. It also seems the New Jersey doldrums have not had any lasting effect on jurisdictions seeking to join the Internet gaming pool. Pennsylvania lawmakers are reportedly weighing an Internet gaming bill to help fill a projected budget hole. California is still debating a number of bills calling for the legalization of online poker. Nevada and Delaware, two states where online poker is already legal, are in the final stages of a system that would share online poker players. The measures are only the tip of a growing Internet gaming iceberg. “It’s come to the point where we can’t wish Internet gaming away,” says Mr Murren. “Who better [to develop it] than the gaming industry? Let’s face it, if someone has a bad experience gambling illegally online here in the US, we are all tarnished. So I feel it is the responsibility of all of us to accept a leadership role. “I also believe there is a commercial opportunity if [online gaming] is done correctly.” Reprinted with permission from Casino Journal.