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MGM Contemplates Profits in Online Poker

May 9, 2013

The management of MGM Resorts International reported that the company was yet to decide whether it will be launching a poker website in Nevada or not. Their report said that the state could not be large enough to offer a productive online market by itself.

In February, Nevada authorized online poker and this week, it was the first to go live as the Station Casinos inaugurated their first offering called UltimatePoker.com. Delaware and New Jersey have legalized online gambling too, and are working on plans to go live.

As MGM continues to pursue a licensing and regulatory process in Nevada and New Jersey, the MGM management believes that state compacts or federal legislation can help to draw more gamblers and raise the liquidity, resulting in a great market that will ultimately generate greater revenue for local governments and companies.

The operators of big casinos would favor state compacts or federal standards because they would offer bigger and uniform markets that would attract more gamblers and bring in greater revenue. State based legislation could result to more regulations and varying tax rates.

The prediction of some analysts is that the online gambling market in Nevada will produce between 50 and 250 million dollars in annual revenue. The larger New Jersey may generate between 500 million and 1 billion dollars annually. Earlier, the MGM officials reported that if done properly at the state level, online gambling will indeed perform better.

MGM reported unexpected profits during the first quarter resulting from the Las Vegas rebound and continued to improve in Macau, China. The casino generated $6.5 million (1 cent a share) though earlier on, it got a loss of $217.3 million (44 cents a share). On average, analysts had predicted that the company would get 10 cents per share as loss.

MGM and Boyd have collaborated with other poker companies such as Bwin.party to offer software and other gaming services in the U.S. The MGM officials are optimistic that Nevada may perform better because of its renowned history in gambling regulation and nearness to bigger states like California, which are also considering gambling legislation.

Written by Marcus · Filed Under Poker News 

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