SOURCE: Spectrum Gaming Capital
NEW YORK, NY--(Marketwired - Sep 18, 2013) - Online gaming in the United States will generate approximately $8.5 billion in revenue within five years, while New Jersey casinos will initially reap approximately $400 million in incremental revenue from online wagering. These are some of the findings from research conducted by Spectrum Gaming Capital. The firm presented its research on the impact of US internet gaming to a group of institutional investors and Wall St. analysts at a September 17 breakfast meeting at Le Parker Meridien Hotel in New York City.
"We believe internet gaming will be additive to the land-based market and will have minimal cannibalistic impact so long as the regulatory authorities pass legislation and regulation that encourages synergy between land based and internet gaming," said Robert Heller, CEO of Spectrum Gaming Capital. "The demographic of the typical land-based gaming customer is different than that of the internet gaming customer, so the potential is there to increase the overall market. If the websites are connected to the established casino operators, then they will market in a complementary fashion that seeks to identify new players and provide them incentive to visit the casinos. This is good public policy because casinos create jobs, capital spending, promote tourism, provide social interaction and attract more affluent customers who can better afford to pay for the entertainment experience."
Heller went on to state: "Based on an analysis of iGaming trends globally and relative positioning of the gaming and lottery businesses in the US, we see around 18 states rolling out iGaming over the next six years including California, Pennsylvania, Illinois, New York, Massachusetts, Maryland, Florida, Ohio and Michigan over the next three years. We forecast approximately $8.5 billion in iGaming revenues in 2019 from those 18 states. We also estimate conservatively that New Jersey will generate around $350 million in iGaming revenues initially and an extra $50 million in win to the land-based casinos from new iGaming customers. Also, we expect the New Jersey casinos to generate an additional $10-15 million in profit from the operation of the iGaming sites that are not branded with the casino names, in addition to about $15-20 million in profits they will generate from operation of the casino branded iGaming sites."
Gaming professionals and government officials who want a copy of the report should send an email to email@example.com and include their name, title, organization and telephone number. We cannot guarantee that all requests will be honored. Spectrum Gaming Group and Spectrum Gaming Capital executives will be available for interviews or meetings at Global Gaming Expo (G2E) next week in Las Vegas. Please visit us at our booth, number 3814.
About Spectrum Gaming Capital
Together with sister company Spectrum Gaming Group, SGC's principals have a combined 100-plus years of global gaming industry experience, have completed $50 billion in gaming industry M&A and financing transactions, and have extensive property operations and development experience.
Spectrum Gaming Capital leverages its extensive experience and Spectrum Gaming Group's deep bench of research and operational expertise to service our clients in five distinct ways:
- Advising on strategic partnerships and financing for casino and resort developers.
- Advising on M&A and arranging private capital placement for mid-market transactions.
- Providing valuation guidance in connection with fairness opinions, restructuring, advising board special committees, investor due diligence, and as expert witnesses.
- Advising on buy-side M&A for larger companies.
- Assisting gaming regulatory authorities in financial analysis and decision making.
About Spectrum Gaming Group
Spectrum Gaming Group is an independent, full-service global gaming research and professional services firm serving private- and public-sector clients on five continents. Spectrum has performed online gaming research and analysis for the National Indian Gaming Association as well as several tribal governments across the United States, has testified twice before the US Senate Indian Affairs Committee, and has been a leader in developing online-gaming policies for more than a decade. Spectrum recently partnered with Alderney eGambling Advisory Services (AeGA) to form Alderney Spectrum e-Gambling Advisors (ASeGA), a joint venture that was established to serve the growing need for effective online gaming regulation in the Americas and around the world. As legalized eGambling continues to expand rapidly, so do the number of jurisdictions and regulatory agencies which must address the challenge for exercising eGambling oversight in a competent and responsible manner. Spectrum produces several conferences, and with partner Fantini Research, publishes SPECTRUMETRIX™, a comprehensive and dynamic suite of web-based reports including the Atlantic City Revenue Analysis; East Coast Slot Report; Mid-Atlantic Gaming Report; Midwest Slot Report; National Gaming-Regulation Digest; and US Gross Gaming Revenue Analysis.