New Jersey Online Gambling Overshadowing Land Based Venues
Online gambling in the state of New Jersey has surpassed the land based venues, doing better in overall gaming revenues for the year thus far.
Online gambling has done quite well in the state of New Jersey, with operators seeing a nice return on their investment. Operators continue to see great returns despite the issue with land based venues having troubles. Several casinos shut down in 2014 and one is set to shut down this October, which will leave Atlantic City with only seven land based venues operating.
Online Gambling Revenues Thus Far
For the state of New Jersey, the gambling industry online has done quite well. According to the Press of Atlantic City, the area has actually been able to see earnings rise 31.7% for year on year totals. The figures released by the New Jersey Division of Gaming Enforcement helped the report come up with the totals. Online operators were actually able to outperform land based venues by 0.6%. Operating land based casinos are more expensive than online operations which helps those who do offer online gaming to earn more based on investment.
In the report, online gaming was able to see a significant increase in online gaming win on a smaller player base, at $72 million within the first six months of 2015. For 2016, the same time frame has provided almost $95 million. New revenue was at around $23 million while land based gaming venues were only able to see around $7.3 million in net profit for 2016 totals.
The total amount of casino revenues are set at just over $1,776,095,000 while 2015 showed earnings of $1,750,124,000. In the report, Anthony Marino suggested that with online gaming earning so much in revenues, and having the ability to reduce cost for operations plus boost profits, perhaps legislators should consider raising the tax rate for online gaming to 25% or even 30%. The onsite rate could then be raised to 20%. This would provide additional money that could be used for specific programs or areas of the state where needed.
Thriving Online Gambling Market
When compared to Nevada and Delaware, the totals in New Jersey are quite good, helping the industry to thrive. Every state that is considering online gambling in the US are looking at New Jersey as an example of how online gaming should take place. States are creating legislative proposals based on how New Jersey does business with regulations modeled based on the rules of the New Jersey landscape.
Where Will Land Based Venues Go From Here?
Land based venues in the state continue to have issues from casinos closing to bankruptcy. The state has even considered taking over Atlantic City finances to try and help the struggling casino industry. The land based casinos that are offering online gaming will be able to use revenues earned to hopefully turn around any negative issues in regards to land based gaming. Casinos that do not offer online gaming may want to consider getting in on the action due to low operation cost as well as having the ability to bring in additional earnings.
Land based venues will also face a fight in the future if a November referendum is passed this fall that will allow two casinos to be created in the northern region of the state. Individuals who live up north in the state as well as in surrounding states will have the option to visit the new venues instead of having to travel to Atlantic City. However, the casinos are also supposed to provide support for venues based in Atlantic City. So, it could be that the seven remaining casinos, once the Taj Mahal closes in October, are able to receive help if the casinos are allowed to be created in the northern portion of the state.
For now, the online gambling industry is the dominating factor in the state and will most likely continue to be as the land based venues continue to struggle for revenues.