Gambling operators doing business in New Jersey are hedging their bets by spreading their platforms across two states. Realizing that Pennsylvania’s fast-expanding gambling industry could serve as a real threat to the monopoly that Atlantic City once had on the East Coast, New Jersey operators are now placing their eggs in more than one basket.
As an example, MGM (owner of the Borgata Hotel Casino and Spa in Atlantic City), and the Golden Nugget Casino are both seeking online gambling licenses in Pennsylvania, with the hope that they will begin to operate across the border sometime next year. Both entities hope to claim five out of the eleven igaming licenses still available in Pennsylvania, now that the market has been open to non-local casinos.
The same modus operandi can be seen from the other side. SugarHouse Casino, a resort operating in Pennsylvania, has a licensing affiliation with the Atlantic City based Golden Nugget Casino.
Sports betting is another fast-growing industry in New Jersey, and will soon get competition from Pennsylvania as well. Gambling regulators in PA recently awarded a sports betting license to Caesars Entertainment. It comes as no surprise that Caesars operates three Atlantic City casinos.
In an interview to The State, the director of the University of Las Vegas Nevada’s Center for Gaming Research, David Schwartz complimented those operators who had the foresight to seek business opportunities on either side of the border.
“Regional diversification is a sound strategy, particularly in the online arena,” he is quoted as saying. “In this market, convenience is a major factor, so the ability to gamble at home rather than traveling across state lines is a major factor. In that case, licensure in multiple jurisdictions makes a great deal of sense.”
Many New Jersey operators simply see an expansion into Pennsylvania as “a natural step”, as explained by Thom Winter, an executive with the Golden Nugget Casino. Winter said that Golden Nugget takes a “long-term approach to online gaming” and thus believes that the group is able to “replicate our New Jersey success in other jurisdictions.”
Internet gambling has been good news for New Jersey and the industry has brought in over $200 million in revenue since the beginning of the year. Since the introduction of legal sports betting in June this year, a staggering $336 million in bets have been placed. Pennsylvania, in the meantime, plans to roll out sports betting in the coming weeks.
