Net Bet Could Reignite New Jersey

Analysts said New Jersey, which has a population of 9 million and is close to East Coast population centers including New York City and Philadelphia, has lucrative potential.

H2 Gambling Capital, an internet game research company based in Europe, predicted that online casinos in the state will bring in $370 million in 2014. By 2018, the entire market could be worth $526 million.

In a recent conference call hosted by Welpago Securities, H2 director Simon Holliday said online gambling would not harm live gaming inside casinos in Atlantic City. Offshore gaming websites that operated freely in the U.S. prior to the passage of the Illegal Internet Gambling Enforcement Act in 2006 “did not substantially erode casino gaming revenues.”

Analysts said the online activity will help Atlantic City Casino recover much of its lost gaming revenue during a 41% decline in the market since 2006. 토토사이트

Internet games are operating under a 10-year trial period. Game operators will pay a 15 percent tax on online game revenue, as opposed to the 8 percent tax paid by casinos on traditional game revenue.

New Jersey Gov. Chris Christie is optimistic about internet gaming. He is relying on tax funds from online betting to fill his budget this year. In a speech leading up to fiscal 2014, which began on July 1, Christie said he expected game tax revenues to increase by $200 million, mostly from online gaming.

Dennis Farrell Jr., a game analyst at Well Fargo Securities, said the figures represent the governor’s belief that casinos will make $1.2 billion from online gaming over a 12-month period, well above the most optimistic first-year estimate of $650 million to $850 million.

“All New Jersey licensees will benefit, but properties with strong brands and gaming facilities will see the biggest gains,” Farrell told investors earlier this month. “I suggest investors focus more on the potential benefits of online gaming legislation rather than monthly fluctuations in individual casinos.”

From a pure player’s perspective, New Jersey has a distinct advantage over Nevada because of its large pool of potential players, said Chad Bjorn, a game analyst at Macquarie Securities. However, moving out of the garden state to places like Manhattan, the New York City borough where potential players reside, has not been a hot topic until now.

“New Jersey will be important to big companies like Caesars and Boyd,” Bainan said, “and the investment community is most interested.”

Beyoncé said her biggest concern was that New Jersey was moving too fast, even within the industry. Christie’s made internet games into law in February, and regulations were written late in the spring.

“Playbooks are changing every day,” Bjorn said.

Smaller no-play zones are being implemented along the Hudson and Delaware rivers to ensure that the activity takes place within state limits. So-called digital fencing has been moved inland to unspecified distances to prevent people located in New York or Pennsylvania from sliding through safety devices.

“Unfortunately for some people, even if they’re in New Jersey, there may not be enough verification, which will be rejected,” Game Enforcement Director David Lieberk told The Associated Press. “This is an inevitable outcome.”

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