NEWS > ANALYSIS
Simon French, analyst with Panmure Gordon, called the decision “a watershed moment for state regulation of online gaming” in the US. “We expect this to lead to urgency among other states to join New Jersey, Nevada and Delaware in regulating. In particular we would highlight California, Florida and Connecticut as likely to be among the next wave to follow suit,” he said. Lesniak agrees, claiming the decision was “bigger than New Jersey”. “Everyone expects Nevada to lead the way in the gambling industry, but now we want to do that and make Atlantic City the Silicon Valley of online gaming. I also believe this will mark the death of any attempt to pass a federal online poker bill.” WINNERS AND LOSERS But who really stands to win in New Jersey under the proposed legislation? Primarily, the news will be of most importance to the state’s land-based casinos, with much of the support behind Lesniak’s bill down to its ability to offer the operators a new revenue stream and job creation opportunities. They could certainly do with a boost; in March 2012 New Jersey casino gross win was $9.5m – a decline from $12.7m in 2011 and $14.1m in 2010. Tony Rodio, president of the Casino Association of New Jersey, said in a statement: “Our industry believes that internet gaming is essential to the continued stabilisation, development and success of Atlantic City through the generation of meaningful revenue, jobs and resultant tax revenues – objectives the Governor has always facilitated.” All eyes will be on the Atlantic Club Casino Hotel, subject to a takeover from PokerStars parent company Rational Entertainment, to see whether the regulator will ?rstly allow the acquisition to take place, and secondly allow the prospective buyer to apply for an online gaming licence. Prior to Black Friday, PokerStars was the clear leader in the US online poker market and therefore represents a huge threat to competitors should it be allowed re-entry. The news will also have been welcomed at online gaming suppliers and operators seeking an entry into the US market. In Nevada the likes of bwin.party, 888, Bally Technologies and 3G Studios have all entered into partnerships to provide land-based casinos with gaming software, and the competition to do so in a lucrative market in New Jersey will be ?erce. After Christie’s announcement, both bwin.party’s and 888’s – rumoured to have been in talks over a partnership with Trump Plaza Hotel in Atlantic City – share prices leapt by more than 15%. Neighbouring state Delaware, itself hoping to have live online poker and casino gaming in 2013, could bene?t from regulation in New Jersey. With a population of less than a million, sharing
Chris Christie Republican Governor of New Jersey
Raymond Lesniak Member of New Jersey State Senate
player liquidity across the states’ borders (an action allowed under its state law) could ensure a successful and sustainable online gaming market. Finally, having long led the ?ght to regulate online gambling in New Jersey, having ?rst introduced an unsuccessful bill in 2010, Democrat Senator Lesniak has ?nally seen his hard work pay off. Arguable, the only real “losers” are perhaps proponents of federal online gambling legislation, who argue that the proliferation of state-by-state frameworks will ultimately be damaging for the long-term future of the industry. It’s no secret that the likes of Caesars and Boyd, along with the American Gaming Association, have lobbied hard to ensure that the likes of Lesniak were unable to get their legislation over the ?nish line. As more states pass such legislation, it will become increasingly difficult for any blanket rules to be put in place. After a frustrating 12 months for those of us keeping a close eye on developments across the pond, it hasn’t taken long for 2013 to deliver a vital ray of hope. Let’s hope it’s the ?rst of many.
HIGHS AND LOWS:
THE ROAD TO REGULATION IN NEW JERSEY
2010
18 Jan: Lesniak introduces his ?rst intrastate online gambling bill S3167, proposing Atlantic City casinos to ?ffW"????RfW'6???2?bF?V?"v?W2??6?VF??r??W"?&?6??6??B&66&B?????&WV&?6?v?fW&??"6?&?26?&?7F?RF?W2?ff?6R?#2??c?33cr76W2?WB?b??6V?FR??FV3???76V?&?6???GFVRf?FW2V?????W6?F?72?W6???( ?2&????#?#"fV#?6?&?7F?RFV??2??2FV6?6?????33cr?7&???r6WfV?F?2?b??FV?6R??&'???r??&?F?6?FW2?bF?RFV&FR?2?&6??6?&?7F?RfWF?W2F?R&????#?VwW7C??W6???&R??G&?GV6W2??2&??????r???v?233??v?F??V7W&W2WB???6RF?&WfV?Bv?FW7&VB?V?6??b??FW&?WB6fW2?ffW&??rv??r?2&?â3ScR76W2?WB?b6???GFVR'???fW'v?V???r???&?G????S?6??????&???#Ss??v??6???6?VFW2?V?F?V?BF?&??6??W&F?'2F?B( ?v????v?66WFVN( ??7B?T?Tt&WG2g&??U27W7F??W'2?76W2F?&?Vv?76V?&??&?F?&???2&?w&W72F?gV????&??"f?FW2??F?V?"&W7V7F?fR6??&W'2??V?S?f?FR??3ScRFV??VBV?F??WGV??FW7?FR&?w&W76??rF?????7FvR??6V?FR?B76V?&??RFV3??W6???&R??G&?GV6W2#Ss??B?B?2&?fVB??F?R7FFR76V?&??( ?&B7F?.( ?6?W6R?2&V??fVB??FV3?#Ss?&?fVB??gV??76V?&?f?FR?#FV3???6V?FR?6?&?fW2&????v?f??r6?&?7F?RCRF?2F?V?F?W"&?fR?"fWF??B?#0?#B???6?&?7F?RFV??2??6?&W72?R?2?WBF???RFV6?6?????v?WF?W"F?6?v?Vv??r&?????F??r?rfV#?6?&?7F?R6??276??r????Rv??r( ???7F?&?2??'GV??G?( ?6???r?Rv???&?fR&????b??27VvvW7F???2f?"w&VFW"??W"&?FV7F????BG&?7&V?7?&R?WB?#r?&6???V?FVBfW'6????b&???v???&R6V?BF?6?&?7F?^( ?2FW6?f?"????&?f??# ?r?&6???W6???6?2?R?2?W7BvVV?2v?g&??vWGF??r??2?FW7BVv??r&????3ScR?&?fVB??&?F???W6W2?B6?v?VB'?6?&?7F?R?3 ??wwr?Vw&?v???R?6????