Can NJ Run Internet Gambling Into The Ground?

Feb 1, 2014 | USA Online Casino News

Internet gambling is beneficial to many. The casinos will be able to pull in more revenue with little overhead costs which could attract more players by offering better bonus structures to those who play online. One of the downsides to bringing internet gambling to New Jersey is that Atlantic City has been struggling for seven straight years, one of the fears is that the online casinos could potentially put the land based casinos out of business which would then create a collapse of the tourism industry.

Can NJ Run Internet Gambling Into The Ground?

The ever-apparent downside to slow or lack of marketing of course, is no sales which drives businesses into the ground. New Jersey online casinos have been off to a slow start and lack of marketing just might be the issue. In the state of New Jersey, less than three percent of the population is using the online casinos which were opened last year. The poll illustrates the fact that many of the state’s gamblers simply don’t know that the online casinos are now available.

The poll was taken on 690 active gamblers within the state. Seven percent of those who participated said they do intend on using the online casinos as a form of entertainment within the next year. The interest is there for players who want to get in on the gaming action however there are several bugs that need to be worked out like with a launch of any new product. One of the biggest problems is the inability to sign up for those who do reside within New Jersey. Some of the internet service providers are actually based beyond the state’s borders which tells the casino companies that someone is trying to create an account without actually residing there which blocks them from successfully signing up.
The online casino had a soft play launch back in November on the 21st. In the first six weeks, more than 100,000 accounts were created which brought in about $1.4 million in revenue just in the last few weeks of December. This may sound like a great number however; it was originally anticipated that the state would see an influx of revenue at about $8.4 million instead.

Internet gambling is beneficial to many. The casinos will be able to pull in more revenue with little overhead costs which could attract more players by offering better bonus structures to those who play online. One of the downsides to bringing internet gambling to New Jersey is that Atlantic City has been struggling for seven straight years, one of the fears is that the online casinos could potentially put the land based casinos out of business which would then create a collapse of the tourism industry.

With the legalization of online gambling, the state will need to maintain borders in an effort to create a balance so that everyone benefits from the newest state laws. The state is also battling the supreme court when it comes to legalizing online sports betting. New Jersey however, is in the process of asking to be left out of this law in an effort to try and create more revenue for the state. Currently, Nevada and Delaware have legalized online gambling as well, fortunately for those states the legalization does not make or break the state financially, in New Jersey they are counting on this legalization to keep the cash flow fluent.