Dismal Outlook for Atlantic City Casinos Good for Online Gambling Prospects
The New Jersey state Assembly is set to vote Monday on a measure that would legalize online gambling. The measure is expected to move through the Assembly and Senate without problem as there is little opposition this second go-around.
An original version of the bill was vetoed by Governor Chris Christie. This time, Christie appears to be supporting the measure, and with good reason.
New Jersey was ravaged by Super Storm Sandy last month. Among the industries hit the hardest, the state’s gambling sector in Atlantic City. Even without the storm, the gambling destination’s newest property, Revel Casino, is losing significant amounts of money.
From the Associated Press:
The best month Revel ever had in terms of gambling revenue was August, when it took in just over $20 million. Its take from gamblers has been steadily falling since then, and it was further harmed by Superstorm Sandy, which hit at the end of October and affected the entire Atlantic City market well into November. Revel’s take for November was a mere $6.2 million.
Revel is seeking its second round of new financing since opening; it secured $100 million in additional financing in August. The casino’s management was not immediately available for comment on the union report.
The report said that if Revel does borrow an additional $300 million, it would raise its debt level to $1.6 billion, generating annual debt payments of $175 million.
The measure to legalize online poker would require websites to be based out of Atlantic City. New Jersey hopes to form compacts with other states and potentially with countries outside the US where such activitiy is deemed legal. Internet gambling is currently a multi-billion dollar industry and the Garden State is seeking to become the hub of US Web gambling.
A federal draft bill to legalize onlne gambling co-authored by Senate Majority Leader Harry Reid and Arizona Senator Jon Kyl was declared dead by Reid late last week.
- Aaron Goldstein, Gambling911.com
