US online gambling hurt by offshore illegals

Online gambling in the US is being affected by illegal operators working offshore, causing the slower than expected growth in the three states that have legalised online gambling so far, Nevada, Delaware and New Jersey.

The comments were made at the recent East Coast Gaming Congress in Atlantic City where a panel of online gambling experts says that illegal offshore gambling operators are hurting the fledgling industry in the US.

The remarks follow the first decline in New Jersey online gambling revenues in April which were down from $11.9 million in March to $11.4 million, Atlantic City only legalised online gambling in November and the decline was a surprise to many observers.

“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 has sent cease-and-desist orders to those illegal offshore gambling companies that are marketing and attracting New Jersey customers.

Brian Mattingley, CEO of 888.com, said his company conducted a survey that indicated only 10% of New Jersey residents know that online gambling is legal in the state.

However the panel of experts all believe that US legalized online gambling will eventually be a huge success eventually.