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MGM Cautious On Nevada Online Poker
Thursday May 2,2013 : MGM TAKING A CAUTIOUS LINE ON INTERNET POKER IN NEVADA
State may be too small to provide a lucrative online market on a standalone basis.
Whilst Ultimate Gaming has jumped right in to online poker operational activity in Nevada this week , land gambling giant MGM Resorts International is taking a more cautious line.
On Thursday the group's chief financial officer, Dan D'Arrigo, told the Reuters news agency that his company was still undecided on whether to launch an internet poker site in Nevada amid concerns that the state may be too small to provide a lucrative online market on a standalone basis.
"We have to make an assessment on the cost to operate that space. We haven't ruled it out, but we haven't given it a green light either," said D'Arrigo. "We're not going to be the first or a pioneer from the state's perspective."
Along with other land gambling industry majors, MGM has achieved online gambling licensed status in both Nevada and New Jersey, despite holding the conviction that either federal legalisation or interstate compacts are necessary to create the sort of player liquidity that will generate large enough revenues.
Reuters reports that some analysts project Nevada's online gambling market will yield only $50 million to $250 million in annual revenues. The larger and more populated New Jersey is pegged to generate $500 million to $1 billion yearly.
"Our preference is for something to be done at the federal level," said D'Arrigo. "We're focused on these state by state initiatives, but it makes (operating) more challenging and more complicated. The opportunities are different in each state," he said. "Hopefully states will compact with one another and that will create liquidity and critical mass."
MGM and Boyd Gaming have partnered with internet poker firms like Bwin.Party to provide software and other services to their online gaming efforts across the U.S., including in both New Jersey and Nevada .
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