US states that bet on legalized Internet Gaming will reap the rewards over coming years.
New Jersey, Nevada, Delaware and other states that take the plunge into the world of online gambling will be rewarded for their courage over the coming years, the latest estimates from analysts show.
New Jersey to earn billions
Although it is difficult to make an accurate prediction because there is no precedent in the US, Wells Fargo Securities recently said that New Jersey's legalized online gambling market would generate from $650 million to $850 million in the short term, before growing to as much as $1.5 billion in five years.
While it is hard to know if this will end up being 100% accurate, it is quite clear that legalization will resurrect the struggling Atlantic City gambling industry. Governor Chris Christie expect total online gambling revenue at Atlantic City casinos to reach $1.2 billion in the 2014 fiscal year, for a $200 million rise in state casino tax revenue.
Boost for gaming operators
Atlantic City has seen its revenue almost halve over the past few years, after reaching a peak of $5.2 billion in 2006. Although this can partly be attributed to the struggling economic fortunes of average punters following the global financial crisis, New Jersey's gaming hub has also fallen behind compared to rivals like Vegas.
Now the outlook is considerably better according to Moody's VP Peggy Holloway. She called the law "a shot in the arm" for existing Atlantic City operators, suggesting that casinos will be able to draw in new customers by offering them incentives to bet online and visit the land-based facilities in person.
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