News coverage surrounding online gambling in New Jersey was intensive in 2013. And after all that bluster, it is therefore surprising to learn that the six-month old venture is already struggling in the Garden State. May 2014 statistics from the Division of Gaming Enforcement show that online gambling operators generated just $10.4 million, which represents a decline of approximately $1 million on April’s $11.4 million worth of revenue. Furthermore, May is the second straight month in which revenue has declined. These results are really setting the scene for a dramatic July when the results for June will finally be shared with the world.
Doubters Return
Pro-online gambling lobbyists and politicians fought tooth and nail to generate an additional stream of public revenue for New Jersey. They were so convinced that the market would soar, helping to bring in vital cash to fund state projects. Now the voices of the doubters will once again be heard, as their opposition grows loud once more. However, these guys are better off saving their “I told you so” statements for the future. There is absolutely no possibility that state legislation will be reversed after less than a year of legal online gambling.
Far Short of $1b Forecast
November 2014 was the moment when New Jersey casinos were legally given the go-ahead to launch their casino websites and let players indulge in their favourite games either at home or on the move. Since that launch over six months ago, online players have generated approximately $61.7 million in revenue. In stark contrast, state governor Chris Christie had forecast revenue in excess of $1 billion in the first year alone. Needless to say, Mr Christie will not be invited to make further financial predictions at any time in the near future – he would be much better off with a travelling carnival and a crystal ball.
Lucky to Crack $150m in First Year
Even the Wall Street analysts seem to be a little wide of the mark in their revised estimates. The most hopeful of the analysts now have NJ online casinos forecast to generate $300 million. At the bottom end of the scale, more conservative analysts consider $200 million to be more realistic. But, in all honesty, the venture will be lucky to crack $150 million – remember, you heard it here first! The casino industry is mistakenly considered an easy source of revenue for tax purposes, but this situation proves that isn’t.
Not Guaranteed Success
The fact of the matter is that developing a successful online gambling offering is anything but a guarantee, no matter what your land-based presence or reputation might be. During the market research phase and prior to deployment of their online offerings, the casinos should have taken an in-depth look at the success of the best online casinos from the UK. In a highly competitive market place, there are ten operators with a very respectable presence and generating hundreds of millions in annual revenue. To breed success, first you have to look at the successful. Only then can you develop a market in an area with no pre-existing operators.
