MGM Resorts recently announced that it plans to launch an online gambling website targeting the New Jersey market before the end of this year. New Jersey along with Nevada and Delaware are the only three states to have legalized online gambling. New Jersey lifted the online gambling ban in November 2013 and gaming analysts expected the market to thrive initially.
However contrary to analysts estimates, the New Jersey online gambling market proved to be sluggish and online gambling operators found it extremely difficult to make consistent profits. The collapse of Atlantic City’s land based casino industry, a sluggish economy and the lack of competition in New Jersey’s online gambling market were some of the key factors which caused the market to remain sluggish.
PlayMGM – New Online Gambling Website
All that has turned around during the last 12 months as New Jersey’s online gambling market has grown significantly and the introduction of PokerStars, the biggest online poker website in the world has also helped to boost the garden’s state online gambling industry. Now MGM Resorts is looking to capture a piece of this fast growing market by becoming the 21^st online gaming licensee in the state. MGM Resorts will launch its playMGM online gaming website before the end of 2017 in partnership with GVC Holdings Plc. The new playMGM online gambling website will have stiff competition from PokerStars as well as the other online gambling competitors who have already captured a share of the lucrative New Jersey market.
In a statement, Corey Sanders, COO of MGM’s said “This is an historic moment for MGM Resorts to be launching real-money online casino and poker under the MGM brand for the first time. GVC has been a first-rate partner for us, and we are excited about the possibilities of extending that partnership as regulated markets open up in the U.S.”
MGM Resorts which is the parent company of the Borgata Casino in Atlantic City will run its playMGM website under a Borgata online gaming license. The Borgata casino also has five gaming licenses issued for the New Jersey market. The online gambling industry expanded significantly in 2016 and was responsible for boosting the revenues of land based casinos and in the process helped Atlantic City’s struggling casino industry post its first yearly increase in the last decade.
Online Gambling Industry Thriving
The online gambling industry saw a 32 percent increase in 2016 as annual revenues climbed to $197 million. The five casino licenses in New Jersey along with their affiliates have generated around $536 million in revenue since online gambling was legalized in the garden state. The state government gained around $93 million in online gambling taxes which was much needed revenue for the state.
There were concerns in the past that the online gambling revenue could eat into the revenues of the land based casinos in New Jersey and cause a further decline in gambling revenues but the opposite has happened as the land based casino industry has gained from the online gambling industry. The online gambling industry has its best month in March 2017 since its inception as online gambling revenues saw an increase of around 40 percent when compared to the same period last year. Online gambling revenues for April are expected to be released a little later this week.
There are a number of states such as Pennsylvania, California and New York who are also looking to legalize online gambling and New Jersey’s online gambling market performance will provide a positive sign for these states that are also looking to generate more funds in the form of gaming taxes.
Atlantic City – Change In Fortunes
The success of New Jersey’s online gambling industry will be greatly beneficial for Atlantic City as in the last few years the city has saw 5 out of its 12 casinos shutdown due to bad market. Now that the online gambling industry is growing rapidly and boosting land based casino revenue, online gambling analyst Chris Grove believes that it is the start of a major shift in Atlantic City’s financial revival. The growth of the online gambling industry has once again encouraged investors to invest in different projects in the city.