Online casinos prove to be beneficial to land-based counterparts in New Jersey

Published on March 6, 2017 in Industry News

Online casinos in New JerseyWhen New Jersey first legalised online gambling back in 2013 they became one of only three states where US casinos are allowed. The biggest concern was that the online casino industry would steal revenue and business from the already struggling land-based casinos.
 

"Atlantic City that was once the home of a thriving casino industry with 12 operational land-based casinos saw a massive decline in revenue back in 2006."

This decline almost led to bankruptcy and with only 7 operational casinos left, the city was terrified that bringing in online gambling might worsen the situation.
 

No threat from online casinos

The online casino industry proved to be no threat to land-based casinos and started off quite slow. The unimpressive growth of the online market led to many online gambling operators completely removing themselves from the city as they had no patience to wait for something that might never happen.

Over the last 12 months, the online gambling industry of New Jersey experienced a positive improvement and their online gambling revenue has also received a massive boost from the introduction of PokerStars in their market. 

PokerStars received their approval for an online gambling license at the end of 2015 and their launch took place early in 2016. The website is known to be one of the largest in the world and its presence in the New Jersey market contributed to a 32% boost at the end of 2016. 

According to a study by Eilers & Krejcik, a gaming research and consulting group, the expected growth of the industry by the end of 2017 will be an extra 17%. The study also revealed that the online casino industry has assisted in traffic and revenue boosts in the land-based casino industry.
 

“Integrated relationships”

According to the study, both online and land-based casinos are part of an integrated relationship in New Jersey and this is highly beneficial for land-based casinos. Playing online seems to encourage players to try their luck at a land-based casino as it makes them curious about the real-life experience.

While some gamblers have completely abandoned land-based casinos, online casinos continue to offer special bonuses such as free buffet meals and discounted stays at casino resorts in an effort to drive traffic to their land-based partners. 

According to the January 2017 figures, the New Jersey Division of Gaming Enforcement (NJDGE) can let out a sigh of relief as both the online and land-based casino industry is moving in the right direction. Atlantic City’s land-based casinos experienced a combined 7.7% increase in gross gaming revenue in the first month of 2017 and the online gambling industry generated an impressive $18.8 million.