NJ Online Gambling Revenue Falls Below Forecast Pace
After the state was permitted for Online Gambling, it has realized revenue of $8.4 Million for the past five weeks since its launch in November and the State Division of the Gaming Enforcement says that the figures are below the anticipated forecasts.
Analysts say that the pace has been way off the expected revenue for fiscal full year and other factors influencing the revenue growth are the banks that are not allowing customers to make use of credits cards for online gambling.
Analysts have projected a revenue of $1,2 billion for the end of its fiscal year, and with revenue of $8.4 million that has been incurred during the 5 weeks will not be enough to meet the target.
The New Jersey’s top gambling regulator, David Rebuck said,
we are not near success at this point’. ‘We will only get a better picture in a few months to come
Mr. Rebuck pointed out that the biggest issue is the payment processing and if this is resolved, the revenue is likely to increase.
However, the state officials are in talks with banks, federal agencies, payment processors and credit-card companies to allow more customers to use their credit cards for online gambling.
The Vice President for Regulatory Compliance at the American Banking Association, Steve Kenneally says,
Most banks are still analysing the risk and rewards to allow the state to conduct limited transactions considering that New Jersey, Nevada and Delaware are the only states allowed for online gambling in U.S. and going ahead may cause a lot of problems if anything goes wrong down the road.
Therefore, the banks have to do the maths before they consider flipping the switch on or off