Online Gambling Revenues Disappointing - Fail to Produce Expected WindfallPublished April 11, 2014 by OCR Editor
New Jersey's example is a cautionary tale to State budget makers and gambling purse-string holders.
To great fanfare, the March 2013 announcement by New Jersey officials of legalized Internet gambling was expected to herald a budgetary windfall. Forecasts predicted a bumper $180m tax revenue bonus - however, a different reality has hit. In summer 2013 the figure was revised down to $160m to the point where earlier this year a scintillatingly low $34 million was predicted. Clearly somebody somewhere got their figures very wrong with the state treasurer announcing that there will be no more estimates on predicted revenues from online gambling.
Stalled Start for Nationwide Online Gambling
New Jersey is not the only state to have got its figures skewed with regard to the prospective windfall brought by legalized Internet gambling. Included in this arcade is Nevada and Delaware, whose poor returns prompted Morgan Stanley to lower their estimates regarding the opening months' performance. The 2017 prediction was lowered from $5bn to $3.5bn, and for 2020 from $9.3bn to $8bn.
Not Without its Critics
Legalized online gambling is not without its detractors. Sheldon Adelson, CEO of the Las Vegas Sands Corp has taken an aggressive stance against online gambling. Arguing against the inherent dangers and going so far as to call Internet gambling a "societal train wreck waiting to happen", he has activated a bi-partisan bill in the US Senate to effectively institute a nationwide ban on online gambling.