Following New Jersey Ultimate Gaming Exit Nevada
The slow pace at which online gambling in being legalized in the U.S. is taking its toll on online operators. . After shutting down their operations in New Jersey, Ultimate Gaming announced they are closing their online poker operations in the state of Nevada citing the lack of profitability as the main reason. Currently online gambling is only legal in three states and online players in each individual state are only permitted to play against each other.
This seriously limits the pool of players available for online operators to work with. Ultimate Gaming who are owned by Station Casinos LLC were the first to offer legal online poker in Nevada in 2013. Chairman of Ultimate Gaming Tom Breitling explained their reasons for shutting down operations in Nevada. He said revenues fell way short of expectations and due to the fact that gaming was legal in only three states this made business very costly. He said,” These factors have combined to make the path to profitability very difficult and uncertain. I think the future has got to be a bigger market than Nevada. In the big picture, Americans have shown they like playing poker online.”
Gaming experts are quick to point out the dilemma online operators like Ultimate Gaming face. They are subject to strict regulations and restrictions while illegal offshore online operators are still able to operate. The online poker player base in the U.S. exists, the only problem is that the legalization process is happening way too slow.