Analysis: New Jersey online gains send clear message to US gaming industry

May 14, 2020
By

It beggars belief there is still industry opposition to online gaming in the US.

I have always been fascinated by the Coalition To Stop Internet Gambling. My understanding of it, however accurate or inaccurate it may be, is that it is designed to preserve the revenue of land-based casino operators against a rising tide of online gambling.

As was discussing at a recent industry panel, retail operators have often seen online as the "enemy."

But how self-defeating is something like the Coalition To Stop Internet Gambling at a time like this?

While the coronavirus pandemic has brought many industries to a halt the world across, land-based casinos have been heavily impacted. Online casino, however, is a service that has continued to entertain players unabated during the COVID-19 crisis.

In Europe, affiliates and operators have spoken of a silver lining to an overall decline in gambling revenue through increases in esports, virtuals and poker. But the biggest volumes of all have come from online casino.

In New Jersey, meanwhile, that much was proven with the release of April’s financial report by the Garden State's regulator.

With the main headline being a record fall in overall revenue in Atlantic City, online gaming figures more than doubled to a record $80m in revenue.

Online poker, too, tripled to a record $5.2m, but the star of the show was online gaming by far; which saw huge rises ranging from a 62% year-on-year increase for Tropicana to a 267% yearly rise for Ocean Casino.

Even during a pandemic, these numbers speak for themselves. It’s a clear message to all retail operators to put aside any allegiances and, rather, utilize the digital options now available to them in abundance.

For states outside the very few that have already regulated online gaming, it should also serve as yet another wake-up call that here is a strong source of growing revenue, ready to be offered at a time when state tax levels are more important than ever.

Admittedly, there are considerations that cannot be ignored. Introducing a new way for customers to lose money during a time of crisis may not be publicly welcomed.

Governments undoubtedly have plenty of other priorities to address at this time, too, while responsible gambling concerns will naturally be higher due to what is considered the riskier nature of online casino.

But these facts still remain:

1. Sports betting recently launched in Colorado, showing states can move forward with new verticals even during this pandemic.

2. Online gaming is a source of revenue on the up for both gaming companies and state governments, while land-based revenue is more or less on hiatus.

3. Online gaming on illegal websites continues to thrive, meaning the vertical takes place anyway, without regulated operators and state governments seeing the benefits.

4. Responsible gambling tools are more readily available online due to advanced software and technology, meaning AML and age verification are far more effective in a digital environment. Pretending there aren't already huge, safely regulated online casino markets around the world is simply living in ignorance.

So, even if hopes of new online gaming markets on my part might be ambitious, at the very least those in existing markets should put their digital prejudices aside.

Right now, the Coalition To Stop Internet Gambling may as well be to Coalition To Stop Gambling Altogether.

State-by-State

Company Spotlight

Bragg Gaming

Bragg Gaming Group is a global content-driven iGaming technology provider, serving online and land-based gaming operators with its proprietary and exclusive content and cutting-edge technology.
Virtual Showroom

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Industry Awards

Land-Based

Supplier

Supplier

GA Newsletter

Exclusive news, analysis, insights, and interviews delivered straight to your inbox

Kiko Augusto - From fantasy sports to sports betting in Brazil

Rei do Pitaco CEO Kiko Augusto joins the (on-this-occasion-injured) Gaming America Editor, Tim Poole, for a Huddle to talk all things Brazil!

Rickard Vikström: How 2025 is shaping up for US iGaming

Internet Vikings CEO & Founder Rickard Vikström joins Gaming America to discuss the US online landscape in 2025.


Another year approaches its end, as 2024 slowly becomes our past, 2025 the present and a wave of opportunity defines gaming's future. There is an air of change as the regulated gaming world looks to welcome a new entra...

8-10-From-the-top
From the top: Reflecting on the past and looking to the future of land-based casinos
Gaming America reviews the closures of the Mirage Hotel and Casino, as well as the Tropicana, but also keeps an eye on the future with Durango Casino and Resort GM David Horn.
36-41-Oliver-Lovat
Cover Feature: Exploring what might be next for land-based casinos
Nothing is new. Everything is new. Oliver Lovat, regular Gaming America columnist and resident Las Vegas expert, discusses what the next generation of casinos need to succeed, while also reflecting on Vegas' generational shift away from the Tropicana and Mirage.
42-43-Lefosse---Brazilian-Sports-Betting
Steadying the ship in LatAm's largest market
After regulatory limbo, sports betting in Brazil is moving towards legal certainty – by Eduardo Carvalhaes, partner in Public Law and Regulation at Lefosse, and Karen Coutinho, counsel in Public Law and Regulation at Lefosse.
44-45-Lazarus-Legal
Brazilian opportunity: The future of LatAm
Edwin Monzon, Managing Partner of Lazarus Legal, speaks to Gaming America about Brazil's upcoming iGaming and online sports betting regulation, assessing both the prospects and challenges involved.

Sweepstakes were the talk of G2E 2024 and are generating plenty of headlines as we enter 2025. It is a fascinating vertical – and indeed whether it should even be seen as a legal vertical at all is in question. The Am...

8-10-From-the-Top
Countdown to launch: Just in time
In this edition of From The Top, Caesars New Orleans SVP and GM Samir Mowad speaks with Kirk Geller to detail what the future holds after the property finally completed its $435m transformation.
14-15-GGA-Americas
The industry's best getting their deserved recognition
The 11th annual Global Gaming Awards Americas once again honored and rewarded the gaming industry's strongest performers throughout the prior 12 months during G2E in Las Vegas.
16-18-G2E-Review
G2E 2024: Discussing the future of US iGaming
A deep dive into the lively debate: Gaming America's Laura Mack examines the objections to US iGaming expansion and the mythbusters offered as a rebuttal at G2E. Surely, it is inevitable in the long run?
20-21-year-review
G2E 2024: A year in review
Gaming America sits down with Pro League Network's (PLN) Mike Salvaris at The Venetian during G2E, to sum up the year and give us the inside scoop of what sports betting has in store for 2025.