Still rising out of an online gambling an implemented in 2006, the online casino industry in New Jersey has produced lesser revenue than initially anticipated. At the eve of its re-inception, the state treasurer of New Jersey announced a prediction of $1.2 billion revenue from online gambling in the state in its first year but this has since been revised a few times to settle at a figure of $55 million dollars.
New Jersey – What happened?
The largest issue that represented itself within the capricious system was financial and regulatory as some banks in the state refused to accept deposits from credit cards. James Kilby, MD of GamblingCompliance said that this could take months to fix.
There were also delays in profit due to the extensive verification methods needed to ensure that players were over the age of 21 and within the specific allowed state of New Jersey, which proved a challenge for customer service representatives from casinos.
If it isn’t broken…
Online gambling, much like its land-based counterpart, is a sizeable form of income for the national treasury of any country, bringing with it vast amounts of employment. According to the UK Gambling Commission online gambling turned over £13,456.07 million from April 2010 to March 2011 giving jobs to 6,077 full-time employees. Globally, the industry has an estimated worth of $35.6 billion dollars in 2013.
Going to and fro with online gambling legislation not only produces holes within economies that have to be filled, but increases strain on the sentiment of tax-paying citizens, many of who feel that they should be allowed a choice in how they spend their money. While issues of gambling addiction and internet security for players may hamper this argument, the heavily taxed alcohol and cigarette industries in the US still help run the economy, one that supports a thriving e-commerce industry with multiple levels of security.
Casinos operating within the online arena have set a standard for themselves by offering users a 128-bit encryption, the same level that major banks utilize to ensure the confidential transfer of information between desktops and bank servers.
Regulatory decisions to ban and unban once thriving industries will directly affect citizens of any country in a negative manner. It is time for consensus among leaders on this issue to prevent further fluctuations in revenue and employment.