NJ Online Gambling Revenues Come In Below Expectations
ATLANTIC CITY, N.J. (CBSNewYork/AP) - The revenue numbers are in for New Jersey's first month of online gaming.
As WCBS 880's Levon Putney reported, Atlantic City casinos brought in nearly $8.5 million in the first five weeks of online gambling.
That figure is off track towards meeting the state's projected $1.2 billion mark at the end of June and slightly below the expectations of Union Gaming Research.
NJ Online Gambling Revenues Come In Below Expectations
"I wouldn't extrapolate much from the first month of operations. Online gaming rolled out with no marketing efforts virtually at all," analyst Robert Shore told Putney.
He added online gaming operators have just begun rolling out apps for mobile devices, which could boost revenues going forward.
"It's going to take at least six months to a year to see how it's all going to play out," Shore said.
One problem, said Shore, is that some banks like Chase and Bank of America are not allowing their credit cards to pay for online gaming.
"I think casinos are working some solutions like going to a casino to get a prepaid card and gamble on," he told Putney.
Shore said he expects payment processing to take some time to resolve.
Overall, Atlantic City's casino revenue has fallen below $3 billion for the first time in 22 years, as increasing competition in the northeastern U.S. continues to shrink the market.
Figures released Tuesday by the state Division of Gaming Enforcement show the city's casinos won $2.86 billion in 2013, down from just over $3 billion in 2012.
The figures also show New Jersey's fledgling Internet gambling industry being dominated by two main players: the Borgata Hotel Casino & Spa and Caesars Interactive, which together won $6.1 million of the $8.4 million that was taken in by New Jersey Internet gambling sites over the year's final five weeks.
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