Study: NJ online poker market worth up to $92 million

[The Buzz]

The New Jersey online poker market, set to open in November, could be worth between $39 million and $65 million in its first year of operation and $55 million and $92 million in year ten, according to a new report by Academicon and PokerScout.

http://www.prnewswire.com/news-relea...227993261.html

[universal4]

From what I could tell from the article, they are discussing turnover, not what it is really worth, which is far less.

Rick
Universal4

[TheGooner]

Agreed Universal - it is a confused piece of writing.

Their basis is this quote that says "They (researchers) found that 38,100 online poker players in New Jersey spent an average of $765 per year, creating a $29.13 million market"

The article then expands that number to an estimated $39m - growing to $65m in year ten in a closed NJ network.

But that is player spend - which gets distributed to other players - they are not playing poker against the house.
The poker room makes money in terms of rake on each hand ... and what is THAT number?

I'm not sure - it's difficult to estimate rake as it depends on the settings and style of play of the players - but if I recall I've heard estimates of between 2% and 4% as a rake percentage?

[boczom1]

I just saw this article on nj.com as well...and am a bit confused. I thought initially they were working with their own 'in-house' type software...(with no affiliates allowed) but now it's revealed.. -

Nine of the 12 casinos have announced prospective partners, including some of the biggest names in online gaming. The gaming division agency has refused to identify them.


Resorts said it would work with PokerStars, the most popular internet poker site in the world, which tried and failed to buy the Atlantic Club casino this year. Caesars Entertainment — which owns Caesars, Bally’s, Harrah’s and the Showboat — plans to work with 888 Holdings. The Tropicana is partnering with Gamesys Limited, operator of jackpotjoy.com.


The Borgata has an agreement with bwin.party, which runs partypoker.com and the World Poker Tour. The company said it planned to hold the tour’s championship at the casino in April.


The Golden Nugget wants to offer its own brand, but said it will work with Bally Technologies to operate its site.


The Taj Mahal plans to work with Ultimate Gaming, which is owned by Station Casinos and was the first company to begin offering online poker in Nevada earlier this year. Trump Plaza has not announced a partner, but it is widely reported to be working with Betfair.
Revel, the city’s newest casino, and the Atlantic Club, have declined to identify the companies they plan to partner with.

http://www.nj.com/politics/index.ssf..._gambling.html

Does this mean affiliates will be able to promote them now on ? For instance Taj Mahal online casino > linking to an Ultimate Gaming link ? (with affiliate ID embedded)

Looks like other casinos still need an affilate program sponsor as well. (^^ wake up call out there)

[universal4]

Alright, for the sake of the argument, let's take the high side of the numbers Gooner posted and use 4%

Then we take the $29 million figure ($29,146,500) so this is worth a little over a million the first year ($1,165,860)

Now someone may come in here and say WE are speculating, but we are using THEIR numbers, and the math can not be incorrect, unless we are using an incorrect formula.

I don't recall what the taxes were, but weren't they to be assesed on the turnover?

If so, online poker itself will be producing well less than a million for the operators the first year or more.

So, whose numbers are wrong?
And why would any single group want to consider to throw many millions at it with such a far reaching ROI?

Rick
Universal4


Now, the email addresses of those individuals that sign up are worth a bundle....but that of course they would likely not want discussed. I challenge thousands of players to use a unique email address to sign up for the games, and see how many times your details get sold.

(right your bank, mortgage company, insurance company or credit card company never sells you details either)