The online gambling business based out of New Jersey has been thriving. But the same cannot be said of its land-based business. In fact, the fortunes have been dipping steadily. This has resulted in the closure of almost half the casinos. operating in the state’s gambling nerve centre which is Atlantic City. One of the most iconic properties there, the Trump Taj Mahal closed down late last year and it sadly hasn’t been the only one to do so.
The Legalisation of Online Gambling Business
Online gambling was legalised in 2013. The state has surprisingly managed to provide the highly lucrative online gambling business with an ideal environment. They are able to operate well, thanks to a proper regulatory regime. There is no doubt that online gambling is a highly profitable enterprise. Especially given that operators don’t have to deal with the huge real estate, payroll, and other operational costs that land-based operators have to face. Furthermore, online casinos appeal to customers who might not wish to travel all the way to a land based establishment.
The gambling industry in New Jersey is looking increasingly healthier. This is because the dust has settled down after the numerous casino closures. The remaining casinos are now beginning to show increased profitability. In spite of them having to share their market with casinos in neighbouring states. In the last year, the industry has also shown an increase over the previous year for the first time in a decade.
Benefits of Online Operations in the Online Gambling Business
No doubt, they are benefiting from having fewer local casinos to compete against. But they are also profiting tremendously from their online operations. The state’s law dictates that all online casinos operating in this jurisdiction have a tie up with any land based operator. The New Jersey Casino Control Commission needs to license these operators.
The newest entrant to the New Jersey online gambling industry will be playMGM. As the name clearly indicates, it has been operated by MGM Resorts International. The online gambling site will be in partnership with GVC Holdings. It is also expected to begin operations before the year comes to an end. Incidentally, this will be the 21st online casino officially authorised to operate in this market.
A New Entrant in the Online Gambling Business
It bears pointing out that MGM Resorts doesn’t have high brand recall in New Jersey. This, in spite of, operating five other online casinos, albeit from Nevada. The company owns Atlantic City based Borgata Casino. It will launch the playMGM site using the online gaming licensed in Borgata’s name. Borgata already operates its own gambling sites. Additionally, it owns five gambling licenses in the Garden State. But the launch of the newest casino indicates that the market is able to absorb new entrants.
New Jersey’s gaming commission has stringent rules in place. This ensures that the business is run well and that the industry does not break any laws. For instance, gambling operators are required to maintain the infrastructure that denies access to players younger than 18 years old. Equally importantly, they are required to restrict access to only those people who live in the state of New Jersey. It is important to keep in mind that online gambling is prohibited in the entire United States. But with the exception of three states.
Gambling operators have realised that it makes a lot of sense to do cross-promotional activities. So between their land based and online operations, you’ll notice a lot of similarities. Players know that they have plenty of options to choose from these days. So they are always on the lookout for attractive offers and promotions.
Overall, the fact that the industry is expanding at a very fast pace is very good news for all parties concerned. This includes operators, the government and the players themselves.