Месяц: Август 2014

The online gambling market gets bigger and bigger

Online gambling in New Jersey continues to grow and with a total of 14 websites now taking real money bets within state borders, the total number of accounts created for the new iGaming industry is getting close to the six-figure mark. As of December 15, there are 91,531 online gambling accounts created in New Jersey across the regulated online poker rooms and online casinos, which officially launched on November 26th.

Almost 100K iGaming Accounts Created In New JerseyNot only is it a highly impressive figure but it also reflects the growth in the first month of real money online gambling in the Garden State. Over 20,000 accounts were created from last week and it seems that the trend will continue as regulators believe that this is only the tip of the iceberg and that more good things will follow.

Of course, we should point out that these are the total number of accounts created and not the number of active accounts. One player can have multiple accounts across the various websites available and many opted to check them out first-hand, even if they don’t plan on returning.

No critical issues during the launch

One of the most important things that continue to drive in the traffic is the fact that the online gambling launch seems to be going without any major problems. Three weeks into the operations, it looks like the market is not only standing strong but also looking forward to even more companies joining in and launching within state borders.

The regulators have taken things very seriously regarding the location of the players within state borders, so much so that the area around the borders has been sacrificed in order to make sure that everything fits perfectly within the laws. This affected some of the residents living in the region but apart from that, there were no major issues. Banking methods also seem to be improving and more options are expected to be offered to the users.

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Despite the many waves that New Jersey has been making, there has been no political blowback, if we don’t include the opposition from casino magnate Sheldon Adelson.

More sites coming soon

Almost 100K iGaming Accounts Created In New JerseyWhile the diversity now available in New Jersey is impressive to say the least, there are still more online gaming sites that have yet to launch for both poker and casino play. Every land-based casino can apply for a license and 10 out of the 12 have already received one. Every license can hold up to five different websites so not even half of the maximum amount of options is now available.

Golden Nugget is the latest addition to the list but it only launched an online casino, with the online poker room being expected early next year. The partnership between Tropicana and Virgin will also launch a poker product in spring 2014 and the Trump Taj Mahal and the Trump Plaza don’t have any Trump-branded gaming site in New Jersey as of now.

PokerStars was recently suspended by the New Jersey Division of Gaming Enforcement for two years so Resorts remains paused as well.

Revel and Atlantic Club Casino are sitting on the sideline for now and will be soon sold on auction to other operators looking to enter the market.

Promotion and marketing can drive more growth

The online gaming operators haven’t yet unleashed the marketing beast and the number of users will certainly increase once the ads and promotions start rolling out. Just some companies have been aggressive in terms of marketing so far and the rest seem to be waiting to see how it goes.

Big bonuses and attractive promotions have always been one of the key driving points for online gamblers.

Who wins and who loses from the POC tax?

On November 12, the House of Commons reviewed the Gambling Bill for the second time in the United Kingdom. If the bill passes, it can have some pretty big consequences on the gambling industry in Europe, and since some of the big operators in the UK are now entering the US market, the effects will be global.

Potential Changes With The New UK Gambling RegulationsThe Gambling Bill aims to solve a taxation problem for online gaming in the UK by introducing a point of consumption regulation. Right now, foreign operators can offer their services to UK residents and not be taxed by the authorities since they are not licensed in the market. The point of consumption tax will make sure that all online gambling operators accepting UK players will have to be licensed and taxed in the country. This in turn makes it more difficult for operators since they have to apply for a license from the Gambling Commission and they will also have to pay a tax on remote gambling profits, which is now proposed at 15%.

The new regulations will take to effect on December 1, 2014, and those that fail to comply with the new laws will suffer fines and even license withdrawal.

The introduction of the point of consumption tax is expected to have wide consequences for customers, operators and existing regulators.

Large operators will get larger

The new tax is likely to help large operators get even bigger and get a bigger share of the market, while the smaller operators are more likely to struggle. The online gambling industry in the UK is huge and it has grown significantly over the past five years. This attracted new companies to the market and smaller operators looking to get a share of the pie, but with the new tax now one year away, tough times are waiting ahead.

While most operators opposed the change at first, it now seems that the large operators are coming around to the idea. According to recent reports, the POC tax can actually increase the revenues and the market share of the gambling operators which have already established themselves as leaders in the market. The cost of obtaining new licenses will discourage some of the smaller and less-known operators, thus creating more room for the big ones to grow.

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Gibraltar tensions rise

Potential Changes With The New UK Gambling RegulationsGibraltar has been a tax haven for various companies over the years. It offers the benefit of allowing operators to advertise in the UK and has been one of the preferred jurisdictions for the big players, like Ladbrokes and William Hill. The POC tax will most likely chance that a bit and it will increase the tensions between Spain and Britain for the territory, which are already quite high due to fishing rights.

While Gibraltar initially considered challenging the Bill legally given the thousands of people employed in the iGaming industry, the Chief Minister has recently announced that it will not take any legal action.

The customer ends up paying the cost

While the POC tax will affect a lot of operators, it is probably the customer who will get the worst deal. The reduced competition in the market is never a good thing for customers since this can mean less options to choose from and also more expensive services. If only a few operators end up dominating the market, they will be less motivated to give special benefits to their players.

Right now, the smaller operators tend to have the best deals since they can’t compete with the huge marketing campaigns but can offer more benefits for players.