Opponents of online poker, have tried to say that online gaming sites will be disruptive to land-based venues if allowed in states of the US. Delaware, New Jersey and Nevada are the only three states that currently provide online poker gaming with Delaware and New Jersey also offer online casino game play. Each state has produced solid revenues from the online gaming options and the land based casinos have not suffered. Many casinos that are trying to fight possible legalization of online gaming in the respective state, say that they feel online gaming will take away their customers.
The Parx Casino said during the recent joint hearing in Pennsylvania that they do not want to see online gaming come into play in the state as they are afraid it will take away from their land-based revenues. However, representatives from Rush Street Gaming and SugarHouse Casino were on hand during the meeting to prove otherwise.
Operating in New Jersey
Rush Street Gaming is an operator that currently runs the SugarHouse Casino in Pennsylvania. The operator also has teamed up with the Golden Nugget of New Jersey to offer online game play at the PlaySugarHouse.com site. Rush Street Interactive President Richard Schwartz and General Manager of the SugarHouse Casino Wendy Hamilton, were both on hand during the meeting to show how they have been successful in New Jersey and how casinos can benefit.
Data was cited from the Golden Nugget located in Atlantic City by Hamilton and Schwartz that showed how the casino is affected. The PlaySugarHouse.com site operates under an interactive license owned by the Golden Nugget. The information provided proved to dispel the myth that online gambling will cannibalize casinos already in operation.
The Data
During their testimony, the information provided by Rush Street Gaming showed that only 11% of the online customers at the gaming sites of the Golden Nugget were patrons of the facility before they registered for an online gaming account. This means the majority of players did not frequent or had even visited the Golden Nugget before. 8% of new customers were active at the casino within the past year, yet another small percentage.
This small percentage is surprising considering the fact that the Golden Nugget does try to get their land-based customers to play online poker and casino games. The casino sends out targeted emails as well as mailers and sign up opportunities on-site to try and get their customers to go online. Still, the majority are individuals who do not visit the property.
89% of those who created an account online were never casino visitors. This is an amazing figure to reveal as it shows players are not leaving the land-based venue to go online. 3% of those who signed up had actually visited the casino before but had not in some time. Their online participation allowed the Golden Nugget to reconnect with their former customers.
The information also showed that of those players who signed up for an online account and were active at the Golden Nugget, actually increased their spending at the facility by 15%. The amount of money they spent also did not decrease.
When looking at figures, land based casinos, especially those in New Jersey, have been able to profit from online gaming. Today’s society is a mobile one and players like to be able to enjoy their casino and poker games on the go. But they also like to visit the actual casino and enjoy gaming as well as entertainment and dining. Casinos have nothing to lose getting in on the poker action online as well as casino gaming as it can be a profitable industry if done correctly.