Online gambling execs taking a second look at how they market in NJ |

By | May 26, 2014

Online gambling execs taking a second look at how they market in NJ |

Finally we are getting to see the real numbers that the online gambling industry in NJ is generating. That is, we are now getting a peek inside the operations and are seeing the true operating costs of running this type of business and it does not look pretty. The operators are clearly losing money as I predicted months ago.

Prior to this recent revelation, we were only being shown the revenue figures but now Borgata and 888 are admitting that the business is not profitable. Even these figures may be deceiving as some of the sponsorship deals ( Party-Borgata and the Devils/76ers and Caesars and the NY Rangers) may be hidden in the financial statements as something other than direct marketing expenses. These deals cost the casinos millions of dollars and the payback may never come.

As I have said before, the NJ experiment is bound to fail because there is limited demand/liquidity and a Federal bill allowing online poker/gambling and thus multi-state liquidity will not be coming anytime soon.

Online gambling execs taking a second look at how they market in NJ |

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Alex Igelman

Alex Igelman is a gaming lawyer and consultantbased in Toronto, Ontario, Canada. In 2007,Alex Igelman foundedGaming Research Partners, a full servicegaming and eSports consultancy that specializes in research and business development.
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  • stevenorton

    It’s difficult to pinpoint the reasons New Jersey’s online gaming has had
    such a slow start. Certainly the inability to use your favorite credit card is
    playing a part, but based on Europe’s tremendous revenues from Internet play, it
    is difficult to understand. It could be the fault of land based casinos and
    racinos, that are so prevalent to all of NJ’s population, rarely more than an
    hour’s drive away. Also some of the problem, may be the difference between US
    and European casinos. A EU or UK casino is generally a very bland evening
    out compared to one in most US jurisdictions. Entertainment and dining options,
    and thousands of other customers to enhance the people watching experience,
    put most US casinos on a par with Macau and Singapore, the most
    successful gaming establishments in the World.