RubinBrown Gaming Stats 2015

iGAMING Following the closure of its New Jersey website, Ultimate Gaming closed its Nevada based Ultimate Poker website in late 2014. The closure of the Ultimate Poker website also marked the end of the industry’s first legal online gaming website in the U.S. Challenges There are two primary challenges facing the online gaming segment that include threats of regulatory changes and difficulty in processing customer payments (buy-ins) from financial institutions. The threat of regulatory changes originates from how the online gaming segment was legalized in the United States. Prior to December 2011, online gaming was prohibited based on the Department of Justice’s interpretation of the Wire Act of 1961. In December 2011, the legal status of online gaming was reversed as the Department of Justice changed its position on the interpretation of the Wire Act. This reversal effectively allowed for the development of state-by-state online gaming

regulations in Nevada, Delaware and New Jersey. However, should public policy change, the Department of Justice could once again reverse its opinion on the Wire Act, which would effectively lead to a ban on online gaming. Another threat is the growing opposition to online gaming within the United States Congress. Online gaming opponents have successfully lobbied Congress to introduce a bill titled the “Restoration of America’s Wire Act.” While the effort first appeared to be a long-shot, the bill is gaining momentum in Washington D.C. The other major challenge facing the segment is the processing of customer payments through financial institutions. This challenge is considered one of the leading reasons why the New Jersey market did not achieve Governor Chris Christie’s often quoted $1 billion revenue projection. Up until 2011, the federal government was very active in targeting online gaming operators soliciting patrons in the United States. After the implementation of the Unlawful

iGAMING REVENUES BY MONTH

$13.50M

$12.75M

$11.30M

$12.00M

$10.58M

$11.25M

$10.31M

$10.50M

$9.75M

$8.37M

$9.46M

$9.00M

$8.25M

$7.50M

Delaware

Nevada

New Jersey

All iGaming

$7.39M

$6.75M

$6.00M

$5.25M

$4.50M

$3.75M

$2.20M

$3.00M

$1.25M

$2.25M

$0.86M

$0.76M

$0.68M

$0.64M

$0.58M

$1.50M

$1.11M

$0.98M

$0.98M

$0.84M

$0.82M

$1.25M

$0.75M

$0.86M

$0.17M

$0.15M

$0.14M

$0.11M

$0.76M

$0.68M

$0.64M

$0.58M

$0.00M

JUL 2013

FEB 2014

JUN 2013

JAN 2014

SEPT 2013

DEC 2013

OCT 2013

MAY 2013

AUG 2013

NOV 2013

16 | RubinBrown 2015 Gaming Stats