New Jersey Online Gambling To Be Worth $1.5bn Within Next 5 Years?March 3, 2013 4:22 pm
Following New Jersey’s approval of its online gambling and poker bill, Moody’s Investors Service has already labelled the move a “big boost” to the Atlantic City gambling industry.
Over the past few years, Atlantic City has seen its revenue almost halve since its 2006 peak of $5.2 billion, and in the meantime it has slipped to number three on USA’s list of top gambling markets. With the introduction of online gambling to the state, the outlook for New Jersey looks considerably more promising and according to Moody’s vice president Peggy Holloway:
“The law is a shot in the arm for the existing Atlantic City operators..The new internet capability will surely draw to gaming some people who don’t currently visit casinos. Operators will also have the opportunity to offer online players incentives to visit their facilities in person.”
When talking to the Associated Press writer Wayne Parry, Peggy Holloway didn’t put an exact figure on how much of a boost online gambling will provide but according to Wells Fargo Securities analyst, Dennis Farrell, the New Jersey online gambling market could be worth $1.5 billion within five years. However, if interstate online gambling laws also find heir way into law that figure may rise exponentially.
Amongst the 12 New Jersey casinos set to benefit the most from online gambling is Caesars Entertainment, which owns the World Series of Poker, while MGM Resorts which co-owns the Borgata, could also see some benefits. In addition, the Atlantis Casino and Hotel was recently bought by online poker giant PokerStars, which may not only boost the ailing fortunes of the casino, but also add its incredible expertise to the state’s online gaming industry.
Up until now, just three states have passed online gambling and poker regulations, but other states are expected to jump on the bandwagon in time and follow suit.