Why the introduction of online betting in New Jersey is a new dawn for U.S. casinos

Jan 20, 2014 | USA Online Casino News

New Jersey has introduced online gambling at the right time. The game has been introduced at a peak time for players because of the winter season. This is the time when many stay indoors and thus would enjoy gambling from the comfort of their homes.

Why the introduction of online betting in New Jersey is a new dawn for U.S. casinos

Gambling enthusiasts in New Jersey now have a reason to smile after the legalization of locally ran online gambling in the state. Most gamblers can now enjoy the convenience of gambling from the comfort of their homes, knowing there is know a safe and locally regulated online casino for their gaming entertainment. If you are in New Jersey, you now have the privilege to place bets online. Indeed, it can plausibly be argued that this is a great chance for the state of New Jersey to prove that online casinos can be more advantageous and rewarding than the land-based casinos. It has been revealed that gambling companies will now get fresh revenue stream obtained from online poker, slots and blackjack to help support their declining player base.

Walton, a technology manager at Westfield believes that this is a unique and lucrative opportunity for web based casinos. It is a chance for players to win money online and cash it at their own convenience. While being interviewed, the 44 year old admitted that the trend is going to impact positively on casinos all over New Jersey.

This is equally a great opportunity for hotels owners because it can be used as a marketing strategy. A good example is Caesars Entertainment Group that plans to introduce loyalty programs to encourage frequent participation from customers. Most of the companies now intend to carry out a through marketing and advertisement plan in order to reach the 8.9 million plus population of this state. A lot of integration is going to take place. Presently, most of the leading casinos have been given the go-ahead by the state to offer online betting. Apart from Trump entertainment resorts Inc., other notable casinos that have been given the permission include Tropicana entertainment and Boyd gaming Corp.

Rising demand of players

According to New Jersey director of division of gaming enforcement, the state is very optimistic about this new move. After the first test and debut on Nov. 21, the new initiative has so far been welcomed with open arms with over 10,000 players registering just 3 days after being introduced. The state’s governor, Chris Christie had earlier predicted revenue of $1.2 billion for all the operators in the fiscal year. He further predicted a whopping $180 million in revenue for the tax collectors. Nonetheless, this is way below the predicted $425 million revenue for the year 2024 as it has been predicted. If this is realized, it is going to be 83% of the total revenue in the US.

Challenges

Nonetheless, Web-based gambling in New Jersey has also faced its share of challenges. For instance, the Chief executive officer of Las Vegas Sands Corp has already opposed web based betting. Given that his firm is the biggest casino operator in the world, many are keen to know whether the federal government will let Sheldon Adelson have his way. He persistently complained that land based casinos stand to lose a lot in terms of revenue. His other reason for opposing this type of betting is the fact that it will not be easy to monitor patrons.

There are also serious technical challenges. For instance, Wells Fargo, bank of America Corp and American Express Company have all declined to allow their credit cards to be involved in New Jersey’s online casinos. On the other hand, some of the software used in the casinos has also wrongly identified customers who wish to register. Dennis Lopez of Somerset is one example of a man who has been identified by the software as being out side of New Jersey State. This is a problem because for a player to be able to register at one of New Jersey’s online casinos he must be within the boarders of the state.

Why the state legalized locally ran and regulated online casinos

Reviving the casino industry is one of the major reasons why new Jersey opted to legalize this type of gambling. The revenue from gambling had tremendously dwindled by 40% in 2012. This came as other neighboring states increased their revenue.

A timely introduction

New Jersey has introduced online gambling at the right time. The game has been introduced at a peak time for players because of the winter season. This is the time when many stay indoors and thus would enjoy gambling from the comfort of their homes.

Other states in the USA are expected to borrow a leaf from the new bold move taken by New Jersey. They are only hoping that this online betting will take off as expected without a hitch. Robert Heller, who is the president of Spectrum Gaming capital in New York believes that the rest of the states are going to follow the same trend.