Land-based casinos benefit from the online versions in New Jersey

Land-based casinos benefit from the online versions in New Jersey

Back in 2013, only three states allowed US casinos and New Jersey was one of them, having legalised online gambling the same year. This arose concerns in the land-based casinos that were already struggling about their revenue and business being plundered by the online casino industry.

"Once being the home of a flourisdhing casino industry with 12 operating land-based casinos, Atlantic City suffered a major revenue decline back in 2006."

Facing almost a bankruptcy cause of the decline and having only 7 operating casinos left, the city was horrified that introducing online gambling would make the situation even worse.

Online casinos are no threat

The online casino industry was a slow starter and appeared to be of no threat to ground casinos. Initially many online gambling operators left the city losing patience to expect impressive growth of the online market, something that was not too likely to happen.

The online gambling industry of New Jersey got a powerful boost in their revenue from the introduction of PokerStars in their market and had enjoyed a positive trend over the past year.

At the end of 2015 PokerStars got their approval for online gambling license and were launched in early 2016. Considered to be one of the biggest websites worldwide, PokerStars presence in New Jersey market boosted it with the whole 32% at the end of 2016.  

A study done by Eilers & Krejcik, a gaming research and consulting group, predicted an extra 17% growth in the industry by the end of 2017. According to the same study, the land-based casino industry profits from the online casino USA industry with regard to traffic and revenue growth.

“Joint interactions”

Based on the study in question, the integrated relationship that exists between online and land-based casinos in New Jersey is highly beneficial for later ones. Online gambling seems to provoke the curiosity of the players and temp them to challenge their luck in the real-life atmosphere of a land-based casino.

Still, there are players that prefer online casinos and disregard the land-based ones, which does not discourage the online casinos to keep offering their special bonuses like free buffet meals or discounts for stays at casino resorts – all in the name of driving more traffic to their land-based partners. 

A heavy burden was removed from the New Jersey Division of Gaming Enforcement (NJDGE, after announcing the January 2017 figures. They gave everyone a confidence that both online and land-based casino industries are heading the right direction. A combined 7.7% gross gaming revenue growth was reached by Atlantic City’s land-based casinos in January 2017, while the staggering $18.8 million were accumulated by the online gambling industry.

Edward Griffin


Edward Griffin

Hey I'm Edward Griffin, one of the people behind I have been living, playing and working in the online casino world for the past 15 years. I am here to help you make the most informed decisions for your online casino experience.

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