The numbers for online gambling winnings in New Jersey remain lower than expected and a Wall Street credit rating firm has now slashed its estimate for the state’s first year to 0 million.
Fitch Ratings had projected one of the lowest estimates for the state’s first year of online gambling at $300 million when it began in November. However, New Jersey reported a third straight monthly decline in June in online gambling revenue. The online casinos won $9.5 million in June, and have taken in only $63 million for the year.
Fitch has now cut its estimate of New Jersey’s 2014 internet winnings to $120 million to $130 million.
“Several factors we had expected to drive sequential growth have not materialized, including a ramp-up in players’ awareness of online gaming as a result of operators’ marketing efforts,” the company wrote in a note to investors. “The number of online gaming accounts increasing 8 percent in June to 378,564 from 351,136 in May, and tripling since December, has not translated into increased revenue. Other factors expected to drive growth include technology improvements, users’ adaption to the available payment methods and the rollout of mobile products.”
The company also noted the amount of casino closings in Atlantic City—online gambling sites in the state are partnered with resort casinos—where three casinos have announced they may close at the end of the summer. The company said several of the closings appear to have been delayed while their parent companies waited for internet gambling to take hold in New Jersey.
The company also noted the risk Atlantic City faces if the state moves to allow casinos outside of the resort, noting a revived move to locate new casinos in northern New Jersey.
