RubinBrown Gaming Stats 2015

iGAMING The United States legalized online gaming market completed its first full year of operations in 2014, generating $134.7 million. The current online gaming segment includes three state jurisdictions and eight operators. The three states that permit online gaming are Nevada, New Jersey and Delaware, with Nevada’s online gaming being restricted to online poker. As the online gaming segment works to establish itself in the U.S., it achieved a significant milestone early in 2014. In February, Delaware and Nevada entered into the first-ever state-to-state internet gaming compact. The compact allows poker players from Delaware and Nevada to play against each other, effectively allowing internet gaming companies to solicit players across state lines. The agreement was made to increase the pool of online poker players (player liquidity) in an effort to increase the wagering activity in both states. While the compact increases player liquidity between states, the compact’s more meaningful impact is the establishment of a precedent for conducting interstate online gaming. Consistent with the development of any new industry, there were also numerous setbacks to online gaming in 2014. The most notable was the closure of online gaming websites in both New Jersey and Nevada. In New Jersey, regulation requires online gaming servers to be located within a New Jersey brick-and-mortar casino. To achieve this requirement, the brick-and-mortar casino operators formed partnerships with established online gaming companies operating internationally. As a result of these partnerships, two of New Jersey’s five original online gaming providers faced significant setbacks in 2014 when their partner casinos endured financial difficulties. Betfair, a London based online gaming company, was forced to look elsewhere as their partner, Trump Plaza, closed its doors on September 15, 2014. In the search for a new partner, the company initially partnered with Caesar’s Interactive Entertainment, which had already partnered with Betfair’s competitor 888 Holdings. In November, Betfair changed partners again, ultimately settling with The Golden Nugget. Ultimate Gaming ran into similar issues in 2014; however, their hand in online gaming was not as lucky. Ultimate Gaming had also formed a partnership with Trump Entertainment to operate the Trump Taj Mahal online gaming platform. After months of alleged contract breaches stemming from Trump Entertainment’s financial difficulties, Ultimate Gaming became the first online gaming operator to pull the plug on online gaming.

GAMING REVENUES BY STATE

$9.72M 7.2%

$2.09M 1.6%

$122.88M 91.2%

Delaware

Nevada

New Jersey

NOTE: Caesar’s Interactive operates in both Nevada and New Jersey

iGAMING REVENUES

$174,360 AVERAGE MONTHLY REVENUE IN 2014

3 OPERATORS

iGAMING REVENUE $2.09M

DELAWARE

0.0% OF ALL GAMING REVENUES

732.3%

AVERAGE MONTHLY REVENUE IN 2014

2 OPERATORS

iGAMING REVENUE $9.72M

NEVADA

0.0% OF ALL GAMING REVENUES

$809,750

44.3%

AVERAGE MONTHLY REVENUE IN 2014

4 OPERATORS

iGAMING REVENUE $122.88M

NEW JERSEY

0.2% OF ALL GAMING REVENUES

$10,239,734

1368.3%

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