U.S. Online Gambling Revenues Fall Way Short Of Projected Expectations
Both pro online gambling legislators and gambling companies are coming under increasing pressure to explain the disappointing or according to critics “dismal” figures generated up to now. Of all the three U.S. states offering legal online gambling New Jersey is facing the most criticism as the expectations there were highest.
Leading up to the legalization of online gambling in New Jersey last year officials were talking about tax revenues from online gambling in the region of $180 million for the fiscal year. This number however is been lowered every time a state official comments on the issue. It was down to $160 million last year and recently this year was a meager $34 million. In an article in Time it is been reported that the state treasurer is no longer releasing the estimated revenues and speculation is that the total annual revenues for the fiscal year could be as low as $12 million.
In another negative sign of the progress of online gamble g in the U.S. came this week when Morgan Stanley dropped their estimates of forecast gambling revenues in the U.S. by 30 percent.
No one can argue with these dismal numbers. The question is why there is such a huge discrepancy from the optimistic forecasts to the actual numbers on the ground. One of the reasons was apparent already last year at the launch of internet gambling in New Jersey. We reported on major credit card companies that were not processing gambling transactions as they cited a conflict with their acceptable use policy.
If that’s enough for online gambling operators to worry about they are also facing some formidable opposition by one of the world’s richest and most powerful men Sheldon Adelson. He infamously dubbed online gambling as a “fool’s gold” and with his well-funded anti-gambling campaign and powerful politicians fighting his cause, he seems to be gaining support.
As it stands at the moment the gambling industry needs to figure out how to live up to their optimistic forecasts of which job creation was a vital reason for widespread support for legalization. If things don’t improve drastically anti online gambling campaigns may not be necessary as the industry could well self-implode.