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Gaming Revenues Fall in New Jersey

Internet gambling in New Jersey was officially authorized at the end of November 2012. Atlantic City casinos hope that internet gambling will enable them to survive and bring in much needed revenue. For years Atlantic City dominated gambling east of the Mississippi but today Atlantic City casinos are facing stiff competition from tribal casinos and legal casinos in neighboring states. Currently Pennsylvania has the second largest gambling market in the United States. In 2013 gambling revenues in Atlantic City failed to top the $3 billion mark for the first time in 22 years.

Recently the Atlantic Club closed and its assets were sold to rivals Tropicana Resorts and Caesars Interactive. Caesar’s now owns the Atlantic Club’s land but has not revealed any plans for the property. So far Caesar’s and the Borgata have dominated the nascent internet gambling market in New Jersey. In December 2013 the Borgata took in $3.3 million during the first month of legal internet gambling. The New Jersey Division of Gaming Enforcement (DGE) reported that internet gambling in New Jersey generated $8.4 million between the November 21st launch date and the end of December 2013.

The Division of Gaming Enforcement also reported overall gaming revenue for New Jersey fell from $3.1 billion in 2012 to $2.87 billion in 2013. The funds generated by internet gambling were not enough to boost New Jersey’s overall gaming revenues over the $3 billion mark. Casinos have reported mixed results since the launch of internet gambling in November 2013. The Borgata, which has partnered with bwin.party, was the most successful Atlantic City casino and posted revenues of $3.8 million between the November launch of internet gambling and the end of the year. The Borgata said that internet poker generated $1.9 million.

Caesar’s came in second with online gaming revenues of $2.4 million. The Borgata and Caesar’s said that most of the money was generated by internet poker. Caesar’s has partnered with 888 Casino, one of the world’s largest internet gambling service providers. Kevin Smith, President of Boyd Gaming, which owns half of the Borgata said the internet casino attracted players that used to be regulars at the land based casino. Smith stated “When matching our online and land-based databases, we found that 60 percent of online casino customers had not been to Borgata in over a year, and over 75 percent had made fewer than two trips to Borgata in the past year.”

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