Credit Rating Agency Casts Doubt On Online Gambling Revenue Projections

moneySTATE – A major credit rating agency says that the Christie administration has significantly overestimated the revenue potential of internet gambling in New Jersey.

Fitch Ratings projects that New Jersey online gambling revenue will be between $200-$300 million next year, rising to between $500-$750 million annually within the next several years. The Christie administration projects annual revenues of $1.2 billion.

“Although some market participants will benefit, New Jersey online gambling is not going to be the savior of the Atlantic City casino market,” Fitch said in a press release. “In some ways, it will be detrimental because it has kept brick and mortar supply in the market when the level of demand dictates that some supply should be removed. Annual Atlantic City gaming revenues have declined from more than $5.0 billion in 2006 to roughly $2.8 billion currently due largely to the development of neighboring markets, yet the number of casinos has remained flat as Revel replaced Sands.”

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