New Jersey Lawmakers Respond To Attempts To Reverse O.L.C. Opinion On Wire Act (Update)
Bipartisan letter asks Justice Department to maintain legal status of intrastate online gambling
A bipartisan mix of federal lawmakers in New Jersey has reacted to recent attempts by several members of Congress to persuade the Deputy US Attorney General to review the Office of Legal Counsel’s 2011 opinion that the Wire Act applies only to sports betting (see previous InfoPowa reports).
In a letter Thursday, legislators urged the department not to rescind its 2011 legal opinion, pointing out that internet gambling is a thriving and strictly regulated industry in New Jersey, helping Atlantic City’s seven casinos recover from three-years of depressed business conditions in which five of the city’s 12 casinos closed.
The letter was signed by New Jersey’s two Democratic Senators, Bob Menendez and Cory Booker, and representatives from both parties.
Online Gambling Growth Continues In Atlantic City
December numbers fail to crack the 20 percent increase benchmark, but are still in double digits
The latest online gambling stats from Atlantic City were released by the New Jersey Division for Gaming Enforcement Friday and show that in December 2017 online operators saw revenue growth drop beneath 20 percent for the first time in months, although at just under 13 percent year-on-year it was still in double digit positive territory.
Overall, online operations generated $20.8 million in December, with online casino action delivering $18.8 million (up 12.9 percent year-on-year) and poker contributing $1.9 million (down 7.8 percent y-o-y.)
That brings total online revenue for 2017 to $245.6 million, a year-on-year rise of almost 25 percent and double 2014’s total of $122.9 million. It includes a remarkable ten consecutive months in which online GGR has exceeded $20 million.
On an annual basis, Golden Nugget led the online sector, delivering $68.5 million of internet revenues, with Borgata, Caesars Interactive-NJ, Resorts Digital and Tropicana closely bunched behind, with online revenues ranging from $42.5 to $48.5 million.
Turning to land gambling revenue, the DGE revealed that in December 2017 Atlantic City casinos saw gambling revenue increase for the second year in a row after a dismal decade in which five of the city’s 12 casinos shut down, eliminating 11,000 jobs.
The seven casinos won $2.66 billion in FY 2017, an increase of 2.2 percent over 2016, with Borgata and Tropicana the top two performers. Borgata won more than $800 million from gamblers, by far the most in the city with revenues up 4.4 percent year-on-year, whilst Tropicana delivered $390 million, an increase of 14.6 percent.
Harrah’s was next at $363 million, an increase of 1.6 percent, followed by Caesars at $325 million (up 7.6 percent); the Golden Nugget at $288 million (up 14.4 percent); Bally’s at $211 million (up 0.1 percent); and Resorts at $190 million (up 10 percent).
“Every single casino won more, and every internet operation reported increased win last year,” said James Plousis, the new chairman of the New Jersey Casino Control Commission. “Total internet win had its fourth straight year of double-digit increases. It shows an industry that is getting stronger and healthier and well-positioned for the future.”
Observers have noted that casino competition is likely to be more intense in the future, with two of the five casinos that shut down in recent years due to reopen this summer: Revel, which closed in 2014, is scheduled to reopen as the Ocean Resort Casino, and the Trump Taj Mahal, which closed in 2016 and will reopen as a Hard Rock casino resort.
On a more sober note, analysts noted that land casino revenues in December dipped 0.5 percent at $206.9 million.
New Governor For New Jersey
Democrat and former Wall Street executive Phil Gordon replaces Chris Christie
Atlantic City’s parent state, New Jersey has a new governor following the inauguration Tuesday of Democrat and former Wall Street executive Phil Gordon (60) and the departure of Chris Christie, governor for the past eight years and a former state Attorney General.
The new governor built a fortune as an executive at Golden Sachs, part of which he deployed to help win the Democratic Party nomination for governor last year. He follows in the footsteps of Jon Corzine, a Goldman Sachs exec who was governor of New Jersey until he was ousted by Christie in 2009.
Murphy’s resume includes several years as ambassador to Germany for the Obama administration.
Murphy took a combative note in his inaugural address, pledging to transform the state into a liberal beacon that fights back against President Donald Trump, and referring to the racist allegations that have recently swirled around the US president.
“We will resist every move from President Trump and a misguided Republican Congress,” Murphy said in his roughly-half-hour-long inaugural address.
He called for the wealthy to pay higher taxes, and a $15 minimum wage.
The new governor is likely to follow a similar policy on gambling as that of his predecessor, according to local media assessments; he now becomes the title litigator in the US Supreme Court case seeking a wider liberalisation of sports betting in New Jersey, which will have profound implications for other states should the outcome be positive.
See NJ.com’s biographical piece on Murphy here:
President Trump called Murphy and new Democratic Virginia Gov. Ralph Northam on Sunday to congratulate them. The White House said that Trump and Murphy agreed to work together and to seek improvements to the country’s infrastructure.
Murphy was sworn in by state Supreme Court Chief Justice Stuart Rabner, using John F. Kennedy’s bible. Murphy’s running mate, former Assemblywoman Sheila Oliver, was sworn in as lieutenant governor.
The new governor thanked Christie for over two decades of public service to the state.
In a tweet after the inauguration, Christie wrote: “Thank you to all the people of New Jersey for the honor of being your Governor for the last eight years. It was a true privilege.”
Local media both praised and criticised the Christie years, highlighting achievements and failures but for most part criticising Christie for his allegedly forceful, arrogant and bullying approach to governance and a notoriously short temper.