It appears that Betfair will survive in Atlantic City. For now. The New Jersey Division of Gaming Enforcement (DGE) has agreed to let Betfair house its online gaming equipment at Caesars after Betfair’s online gaming partner, Trump Plaza, closed less than a month ago.
The regulations for online gaming in New Jersey state that all gaming servers and related computer equipment for an internet gambling site must be located on the premises of an Atlantic City casino. In acquiring an online gambling license, Betfair partnered with Trump Plaza and thus housed its equipment there. Unfortunately, the Trump Plaza shut its doors on September 16th, thus putting Betfair’s online operation in the United States at risk.
Betfair’s poker operation was not much to speak of, so would not be any sort of loss. Seriously, it would almost be zero loss, aside from the fixed costs of the equipment. According to the New Jersey DGE’s August report, the Trump Plaza’s (and thus Betfair’s) revenue for the year was $49. Forty-nine dollars. That would be embarrassing if that was the figure was for an hour, but it was for EIGHT MONTHS. It’s like a couple buddies decided to logon to play heads-up for a while and…nothing else. Betfair’s casino, though (betfaircasino.com), has been respectable, having generated $5,053,550 year-to-date. That accounts for about 8 percent of the state’s internet casino games total.
That 8 percent is probably a big reason why the Department of Gaming Enforcement was willing to throw Betfair a bone here. Though many of Betfair’s customers might scatter to other New Jersey-based sites if Betfair were to disappear, why take the chance? Just allow Betfair to team up with another casino and call it a day.
With the approval of the DGE, Betfair will move its equipment over to Caesars. This does not mean, however, that the two parties have inked any sort of deal beyond allowing Betfair to keep its equipment on Caesars property. In fact, the statement by the DGE specifically says that its “approval is limited to the Data Center Sublicense Agreement which was submitted.” The statement does appear to permit an expanded agreement if Betfair and Caesars want to make one, reading, “Any additional contracts entered into outside this Agreement must be submitted to the Division for review and approval.”
Caesars Interactive currently operates WSOP.com in New Jersey.
The Trump Plaza was the fourth Atlantic City casino to close in 2014; the city began the year with twelve. The Atlantic Club closed in January, Showboat in late August, Revel shutdown in early September, and then the Trump Plaza shuttered its doors in mid-September. The Trump Taj Mahal may also close in November. It looks like the Revel may be resurrected, though, as it was purchased in an auction last week by Brookfield US Holdings LLC for $110 million. Brookfield, which owns the Hard Rock in Las Vegas and the Atlantis in the Bahamas, said that it intends to re-open the Revel as a casino. It has not announced a date yet.
