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NJ Gambling License Application Period Closes
Wednesday July 31,2013 : NEW JERSEY ONLINE GAMBLING LICENCE WINDOW CLOSES
Over three dozen companies lodge applications
The big story stateside on Tuesday was the 37 companies that New Jersey Division of Gaming Enforcement announced had submitted applications for intrastate online gambling licensing when applications closed.
The list included all 12 of the Atlantic City land casino operators keen to offer online gambling, along with technology software, marketing, telecommunications and other service firms interested in the New Jersey internet gambling market, scheduled for launch in November this year.
The enforcement division's director, David Rebuck, said in a statement that the regulator had completed a preliminary review of applications filed by companies that want to work on Internet gambling with the state’s casinos, revealing that a total of 37 applications were received.
“We see this as the first round of filings and we expect that more applications will be filed as the start of Internet gaming moves closer,” he said, adding that identities will not be disclosed until they are published on a list of active vendors on the division’s website.
However, companies have made no secret of their New Jersey intentions, with Caesars Entertainment Corp., which owns four AC land casinos in a partnership with the European 888 online gambling group, and a combination of Boyd Gaming and MGM involved with Bwin.Party Digital Entertainment.
Bally Technology and Golden Nugget Atlantic City have also served notice that they will be involved as partners, as has Resorts Casino Hotel, which has teamed up with the world's biggest and most successful online poker operator, Pokerstars. The Trump Taj Mahal Casino Resort has linked up with Ultimate Gaming, a Station Casinos subsidiary responsible for online gambling activity in the group, and the first Nevada licensed online poker room to go live.
Tom Pohlman, Golden Nugget's general manager, told Bloomberg news that he believes Internet gambling is shaping up as a multibillion-dollar market across the United States and his company wants to play a major role in it.
Other previously announced partnerships include Tropicana Casino and Resort with Gamesys, and Trump Plaza Hotel with the UK betting exchange experts Betfair.
Two AC casinos that have not yet disclosed partners are the controversial Atlantic Club, which recently backed away from a partnership with Pokerstars (see previous InfoPowa reports) and the cash-strapped Revel group.
Altogether, ten New Jersey companies have announced partnerships and will be subjected to stringent probity and technology testing and assessment, say Wall Street analysts.
Bloomberg business news reports that Deutsche Bank analysts have boosted their expectations for the online market in New Jersey to $275 million a year due to the number and quality of online partnerships evolving.
Recent applicants include the UK-based 2UP Gaming publicly listed company whose US chief, Victor Crandon revealed was in negotiations with undisclosed AC parties, and late applicant KGM Gaming based in Philadelphia, which plans to offer a range of Internet casino games via online and mobile channels and claims to be in negotiations with six different land casinos.
"Do we think it is an amazing market opportunity? Yes. Do we think it's a game-changer for New Jersey? Yes," Crandon said.
Rebuck appears to agree with him, saying:
"Through marketing efforts, we believe the casinos will significantly boost the market and provide an enhanced gaming opportunity that will supplement the bricks-and-mortar operations."
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