Legalized Online Gambling Improves Local Credit Ratings in New Jersey

Published: December 29, 2013

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With New Jersey’s first year of legalization of online casino and gambling industry, Moody’s mentions that the services offered within the industry is predicted to generate about $250 million to $500 million in gambling revenues which is beneficial towards the state’s credit position. Moody's Investors Service is a leading global credit rating, research and risk analysis firm which provides crucial benefits and valuable opportunities for issuers and investors alike.

New Jersey became the third state in the nation to legalize the online casino and gambling industry this year. With the land based facilities and services producing 2.8 billion in revenue each year, New Jersey’s Governor Chris Christie predicted that the legalization of the online casino and gambling would boost the economy in various aspects. According to Moody’s analyst, the industry “provides a much-needed boost for a market that has suffered protracted declines.” Fitch, another credit rating company which produced financial statistics also reports that the industry will bring at the very least $200 million in revenue for the first year that it kick starts in New Jersey.

However, despite these ratings, it is also said that the industry would bring in a rather small impact to the financial sector of the state of New Jersey. This is because “Given the limited profit potential for any individual operator, Internet gaming is unlikely to materially improve credit quality enough to affect ratings for the foreseeable future,” reported Moody’s. Fitch on the other hand said that online casino may not save Atlantic City from its previous downfall of the gambling market. Atlantic City was a major vacation spot in the roaring twenties however the attraction sank over the years which caused the struggle within financial sector of New Jersey. With the online casino and gambling legal, it is hoped to stabilize the economy of the state. Atlantic City is now seen as a premier spot for online casino and gambling services.

Currently, there are approximately thirteen websites that runs the service of online betting and it only legal within New Jersey and two other states: Delaware and Nevada. Nevertheless, it is expected that with the positive response and support towards online gambling, there could be a viable future for the industry to prosper. Furthermore, eight other states such as California, Hawaii, Illinois, Iowa, Massachusetts, Mississippi, Pennsylvania and Texas are also in consideration to pursue similar laws of opening up to the online gambling sector.


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