New Geolocation Parameters Help Boost New Jersey Online Gaming Revenues

Online gaming providers in New Jersey have had difficulty reaching many players on the outer edges of the state. Many players said that the geolocation technology identified them in other states, which prevented them from accessing online gaming sites. Brian Mattingley, CEO of 888 Holdings, recently stated to nj that gaming providers have convinced regulators to loosen their requirements.

The new geolocation technology standards allowed gaming providers to access players on the outskirts of the state. Mattingly stated that the new standards helped gaming operators generate significantly more revenue in January and February.

Kerry Langan, a spokeswoman for the Division of Gaming Enforcement, said that the regulator intends to help the industry boost revenue. Langan said that the DGE is working closely with gaming operators and geolocation service providers to reduce false negatives to allow more New Jersey citizens to access the site. However, the DGE needs to be careful not to loosen the standards too far. Both the state government and individual gaming providers could run into serious problems if any out of state citizens gained access to the site.

The new standards have played a key part in boosting online gaming revenue in the last couple of months. However, the industry appears to be growing on its own as well. Fitch Ratings recently predicted that the industry will generate about $200 million in revenues by the end of the year.

The industry could grow even more quickly if the federal government legalized online gambling. However, Mattingly is pessimistic that federal standards for online gambling will ever be adopted. He said that online gambling will probably continue to be regulated at the state level, which means that individual states will need to form compacts with each other to boost their player pools. Nevada and Delaware recently signed a compact to allow players in both states to compete against each other.

New Jersey regulators didn't state whether they intend to join the compact, but are discussing a potential partnership with Pennsylvania. However, Pennsylvania lawmakers will need to legalize online gambling before such a partnership can be formed.