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Online Gaming Could Hurt Nevada & NJ Casinos

Saturday, December 14th, 2013 Online Gaming Could Hurt Nevada & NJ Casinos

Casino owners in Nevada have been very supportive of online poker sites that the Nevada Gaming Board has approved. While most of them think that extending their services through online poker rooms and casinos can be revenue boosting, some also think that introduction of online gaming can hurt the revenues of brick-and-mortar casinos in Vegas, as well as Atlantic City. Till recently, it was only Sheldon Adelson of Sands Corp who was speaking against online gambling. Now, Caesars Entertainment, the largest casino company in the world, is also warning investors to be wary of the affects that online casinos and poker rooms can have on their brick-and-mortar counterparts.

Competition between Online and Live Casinos

A recent report released by Caesar’s corporation stated that the group, along with other online casino and gaming services providers will continue to offer real money online gaming in Nevada and New Jersey. Nevertheless, there will be competition between the two platforms. The competition to the casinos in Las Vegas will get even tougher as more and more states in the country approve online gaming.

The report indicates that the convenience of online gaming in the Nevada, NJ and Delaware may reduce the number of people visiting the Las Vegas casinos and the income generated by them. The report stated that the group’s casinos in Atlantic City and Las Vegas will both be affected due to the increase in online gaming activities.

Nothing to Worry, Says Spokesperson

The spokesperson for Caesar’s Entertainment stated that the report included a warning about the affects of online gambling only due to legal issues. He stated that as per the legal requirements, the company had to use such language when mentioning the potential risk factors. He also added that based on the company’s experience in the industry, the introduction of new channels to reach out to customers and offering them new and innovative products online has not in any way affected the number of visitors.

In spite of what the report states, the company insists that the decline in number of visitors to their Atlantic City casinos was due to increased competition from other land-based casinos and also due to the recession, which the country is slowly coming out of.

Land-based Casinos Offering Bigger Rewards

Even as Caesar’s Entertainment issued a warning about the effects that online gaming can have on brick-and-mortar casino revenues, a lucky player at MGM Grand has hit the jackpot on the Megabucks machine developed by IGT. Now that is the kind of money that players may not be able to win by playing online. Only a week or more after it created a millionaire through its Megabucks slot machine, IGT has created yet another millionaire in Las Vegas.

The lucky man from the Lauderhill, Florida, Mark H. hit the jackpot on his favorite Megabucks slot machine, which he had been a fan of since 1996. Mark is a producer and had recently worked on the “All American Christmas Carol”. He is taking home an amount of more than $10 million, which he plans to invest in his movie production company.

IGT has given away more than $22 million in jackpots only in the last month, bringing cheer to the winners in the holiday season. IGT also develops online games but the company is not fully into online poker. Considering that Nevada only has online poker and not other casino games online, there is no reason for brick-and-mortar casinos to worry about lesser visitation numbers, for the Sin City and Atlantic City will both continue to draw slots and table game lovers from across the US.