Steve Callender, the general manager at the Tropicana Atlantic City, told NewJersey.com that around 75 percent of the people who have attempted to play on the resort’s gaming website have been denied because the system couldn’t verify that the users were in the Garden State.
“I would say a quarter are getting on,” Callender said. “We don’t have a situation where people who are outside the state are getting on.”
This could be a major issue moving forward for the online gaming industry. If systems are unable to verify accurately where its users are logging in from, other states may not adopt laws that legalize Internet gambling.
What happens next?
Legislators in other states are likely watching the New Jersey situation closely and if the casinos are unable to get through the initial troubles it may be difficult for lawmakers to adopt online gaming laws in the future.
Despite the problem with identifying where users are located, the state can’t say the launch of online gaming has been totally unsuccessful. In fact, nearly 110,000 accounts were created in the first four weeks, according to the state Division of Gaming Enforcement. States considering online gaming may look at those figures and see the potential for untapped tax revenues.
It will be interesting to see how states without casinos attack online gaming, as the websites in New Jersey are all partnered with an Atlantic City Casino. This is just the beginning for the re-emergence of online gaming and the success of New Jersey will likely have a major impact on the future of the industry.
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