Internet gambling in the United States is off to a slower start than many had imagined, but regulators and industry observers expect it will flourish in time.
Speaking Monday at the East Coast Gaming Congress in Atlantic City, a panel of experts said illegal offshore gambling sites continue to operate, and that’s hurting the fledgling online gambling industries in the three states that have legalized it.
New Jersey saw its first decline in Internet gambling revenue in April, falling to $11.4 million from $11.9 million in March.
It began in late November as a way to help Atlantic City’s casinos gain revenue and customers. Nevada and Delaware also offer it.
“Internet gambling exists in all 50 states today,” said David Rebuck, director of the New Jersey Division of Gaming Enforcement. “It’s just not regulated.”
Rebuck said his state recently sent cease-and-desist letters to gambling companies from out of state that are marketing to New Jersey residents.
Internet gambling can only be conducted within New Jersey’s borders, according to state law.
Brian Mattingley, CEO of 888.com, said his company conducted a survey that indicated only 10 percent of New Jerseyans realize Internet gambling is legal in that state.
But despite its relatively slow start, panelists were unanimous that online gambling has plenty of room for growth in the US.
