New Jersey Online Gambling could be worth $1.5b in 5 Years
Last month, New Jersey became the third state in the United States to legalize online gambling. Governor Chris Christie signed the bill into effect, and it will allow Atlantic City’s 12 casinos to legally offer online gambling to New Jersey residents.
So far, the Garden State is only preparing to launch online casino and poker sites. However, Moody’s Investors Service has predicted that New Jersey’s internet gambling should be very profitable once it does get up and running. Moody’s vice president Peggy Holloway discussed the matter by stating:
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.
Wells Fargo Securities analyst Dennis Farrell actually went beyond just giving out general thoughts on New Jersey’s online gambling. Even if the internet gaming operation merely stays in-state, Farrell believes it could be worth $1.5 billion within five years. Assuming the Garden State gets involved in intrastate gaming – which Nevada recently legalized – this figure could be much higher.
Going back to what Holloway alluded to, the immediate focus isn’t on dollar figures, but rather helping Atlantic City’s sagging economy. The once-proud casino hub has seen its revenue plummet from $5 billion in 2006 gaming revenue to $3 billion in 2012 gaming revenue.
Some of the Atlantic City casinos that could really benefit from legalized gambling include Caesars, the Borgata, the Atlantic Club, and Revel.
Caesars and the Borgata are backed by major companies and can put a lot of money into their online operations. The Atlantic Club has been purchased by PokerStars and should offer the top online poker services. As for the Revel, this $2.4 billion casino filed for Chapter 11 bankruptcy in March and needs to start generating revenue by any means possible.