Conference Discusses Future Prospects OF U.S. Online Gambling
The annual East Coast gaming Congress convened this week at the Borgata Hotel Casino & Spa. The challenges of the online gambling market in the U.S. are clear to all but the conference is aiming at shedding a broader light on what many still believe will become one of the largest global online gaming markets. We all know that internet gambling in the U.S. is only available in New Jersey, Delaware and Nevada but the potential for massive states like California joining the club could become a game changer.
As we speak no one can deny that initial forecasts of online gaming revenues were way too optimistic and the current revenues generated are a fraction of what is needed to build a long term sustainable online gaming market. Current revenues in New Jersey were only $122 million in 2013 with Delaware only bringing in $2.1 million. Nevada generated only about $8.1 million from the months of February to November 2014. While these numbers are undoubtedly low many believe that this is a “reflection of expectations” as the industry is still in its infancy.
In New Jersey the main stumbling blocks are still technological difficulties with geolocation technology as well as the banking institutions hesitance to allow credit card holders to use their credit cards for online gambling due to their concerns for being sued.
Speaking at the conference, Eugen Johnson, Spectrum senior VP addressed the long term view of casino executives who realize their traditional client base of older players is now been replaced by the baby boom generation who do almost everything online and on mobile devices. Johnson terms them the “replacement generation” and believes the online casinos represent “the nest expansion phase for the industry”. He went on to say the he does not believe it will replace the brick and mortar casinos but will become an essential component.
Other issues still hampering the growth of online gambling in the U.S. is the stigma associated with period when Federal authorities banned online gambling throughout the U.S. This is set to change the moment that other states like California who are advancing legislation aimed at legalizing online gambling join the party.