The New Jersey online gambling market has plenty of competition and a market size well below initial projections, so we shouldn’t be too surprised to see that there’s not enough room for 10 major sites to profitably co-exist. The first major casualty is Ultimate Gaming, who announced they are pulling out of the market after accusing the Trump Taj Mahal of breaching their contract on several counts.
Tom Breitling, chairman of Ultimate Gaming, also confirmed they are working closely with the New Jersey DGE and ensuring the safety of player funds:
“We are grateful to the state of New Jersey and the New Jersey Division of Gaming Enforcement for allowing us to be one of the first companies to bring online gaming to the citizens of New Jersey and appreciate their leadership as one of the first states to allow online gaming… We are working closely with the Division of Gaming Enforcement to ensure a smooth transition for our online gaming customers as we wind down our New Jersey operations.”
Trump Entertainment Resorts has been on a bit of a downward spiral as they also recently announced the closing of the Trump Plaza casino, thereby leaving the question of what will happen to their other partner, Betfair’s NJ online casino.
Betfair and Ultimate Casino have garnered year to date profits of just $5 million, good for last place in the New Jersey market. While some may consider this a sign of the failures of the new NJ internet gambling regulations, we suggest that this is part of the necessary growing pains of a new, developing industry. Small state-wide gambling markets cannot support so many competing firms, and market consolidation is part of a natural progression towards a robust, lasting industry.