Web Gambling Won’t Help NJ Credit Rating Much: Christie Still Predicts $1 Bil by July
New Jersey Governor Chris Christie came under heat for claiming that online gambling will bring in some $1 billion to the Garden State. Industry analysts have since said that Christie grossly overestimated the amount that would be generated.
But the outspoken Governor is standing by his original prediction.
“Same as they were before,” Christie said during a press conference when asked about his generous estimate.
The state Division of Gaming Enforcement said 37,277 accounts had been created by last Thursday following the official launch of real money Web gambling four days earlier. However, some of those who joined could have opened up multiple accounts at the half dozen or so casinos currently allowing Web gambling.
“That’s pretty good in a week,” Christie added. “I’m not worried.”
And why should Christie worry?
Even with Moody’s estimate of $250 million to $500 million in gambling revenues generated during the first year, a benefit will likely be realized, albeit small.
“Given the limited profit potential for any individual operator, Internet gaming is unlikely to materially improve credit quality enough to affect ratings for the foreseeable future,” Moody’s found. Fitch put it more bluntly: “online gambling is not going to be the savior of the [Atlantic City] casino market.”
- Aaron Goldstein, Gambling911.com
