Spectrum SIGHT White Paper Spectrum SIGHT White Paper June 2017 final | Page 5
“Offline poker revenues have grown since the inception of online poker.” 3
Caesars, which operates the highly successful Total Rewards player-loyalty program –
also noted that:
80 percent of its online players are new customers.
Of the players in its Total Rewards database, 42 percent of those who played online
were inactive prior to the offering of online play and then reactivated after signing
up online.
The ability to leverage online play to generate land-based activity is hardly unique to
Caesars. Veteran gaming reporter Steve Ruddock noted earlier this year in a report on online
gaming in New Jersey:
In the months following its launch, Borgata executives revealed that about 85 percent of online
registrations were either new to its database or had been inactive land-based customers for at
least two years.
“Online gaming is growing our database,” stated Boyd Gaming President and CEO Keith Smith in
a February 2014 earnings call. Smith remarked that online gaming was “creating a long-term
opportunity to market Borgata to an entirely new group of customers.”
Borgata hasn’t updated these numbers since Smith’s 2014 comments. But its early results lined
up closely with Caesars’.
There’s no reason to think the two gaming behemoths have diverged since. Nor is there any
indication that Borgata is now an outlier in the New Jersey online gaming market. 4
Golden Nugget reported the following data points to Spectrum about its experience to
date with online gaming in New Jersey:
Only 11 percent of online signups have come from Golden Nugget Atlantic City
rated patrons.
Of those, only 8 percent were active at Golden Nugget Atlantic City in 12 months
prior to online signups. 5
Tropicana Entertainment, which operates the Tropicana Casino & Resort Atlantic City,
reports a quite similar experience. According to Luisa Woods, Vice President, Online and
Internet Marketing at Tropicana Entertainment Inc 6 .:
3
PowerPoint presentation by Caesars Entertainment Senior Vice President David J. Satz, March 7, 2017 before
Pennsylvania House Gaming Oversight Committee
4
Steve Ruddock, “Five out of Five New Jersey Operators Agree: Regulated Online Gambling is Good for Business,”
Online Poker Report, May 8, 2017. https://www.onlinepokerreport.com/25201/online-gambling-helping-nj-
casinos/
5 Email from Thomas Winter, Golden Nugget Vice President of Online Gaming, June 12, 2017.
6 Interview with Luisa Woods, March 23, 2017
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Observing 15 Anniversary of SIGHT
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