GRAPH: New Jersey Online Gaming Revenues Disappoint Greatly In Year OneRevenue Of $124 Million Misses All Estimates For Market |
|
The New Jersey online gambling market has disappointed many people greatly in its first year in operation. According to research from GamblingCompliance, total I-gaming revenue for the year will be about $124 million, well short of every single mainstream estimate.
Here’s a look at a graph comparing the actual revenue to previous estimates. The graph was provided by GamblingCompliance’s Chris Krafcik on Twitter.
As you can see, no one expected it to be this low. You can probably discard New Jersey’s estimate of more than $1 billion in revenue in year one as a politically-motivated estimate.
The Garden State sees businesses located in Atlantic City offer several casino games on the Internet, in addition to peer-to-peer poker. As the year has gone on, poker has seen a gradual reduction in its share of the overall I-gaming pie. In November, Internet gaming revenue in New Jersey was $8.7 million, and of that total $1,877,603 came from online poker. That’s the smallest figure since the Garden State saw the launch of real-money online gambling late last year.
The reasons for New Jersey’s market being smaller than anticipated? The state has not yet partnered up with another jurisdiction for online poker to increase liquidity and payment processing issues linger for consumers. Not all credit cards and banks are allowing people to deposit onto New Jersey online gaming sites, despite the activity being legal and regulated in the Garden State.
According to NJ.com, the spring of 2015 is when some are predicting that revisions in the way gambling transactions are coded will go into effect.
In the U.S. sector Visa transactions are still running at under a 50-percent approval rate, with MasterCard performing markedly better, but still well below industry standards at roughly 70 percent. Fortunately, improvements are expected around the corner. The reason for these low success rates is the way gambling transactions are coded. Presently, both illegal and legal online gambling transactions are coded in the same category, known as 7995.
Copyright © 2001-2024
CardPlayer.com. All rights reserved.
