Key Takeaways
- New Jersey was widely considered the true test case of state regulated gaming in the US, and the first revenue figures announced Tuesday give an early indication of whether the test is a success or failure.
- DGE figures showing tax revenues of $1.25m to date show that Governor Christie is 0.1% of the way to his $1.2bn revenue target.
- The rate of growth necessary to hit the New Jersey target is staggering and looks extremely unlikely.
- Should tax revenues come in at well under 10% of Governor Christie’s expectations, and fail to impress gaming company investors, a powerful argument for extending online gaming to other states will be weakened—and then the poker industry will be back to hoping for a federal solution.
This article has been corrected: Previously reported revenues of $1.2bn referred to total gaming revenues not state tax revenues
While unique factors affect expectations for the Nevada market, New Jersey was widely considered the true test case of state regulated gaming in the US. The first revenue figures announced Tuesday give an early indication of whether the test is a success or failure. If New Jersey fails, hope of expanding state regulation across the US will have been diminished.
