There was much uncertainty for Betfair’s future within the New Jersey casino market after its partner in the US State, the land-based Trump Plaza casino announced it would be closing down in September 2014.
Thankfully, the worldwide gambling giant has managed to salvage its place in New Jersey due to a deal struck with Caesars Interactive Entertainment, a US gaming operator. The move was necessary as Betfair announced no plans to leave New Jersey, vowing to continue to operate in the state despite the closure of the Trump Plaza.
This is great news for all online casino fans as it means that Betfair can continue to operate its New Jersey based Betfaircasino.com website. The site was originally licensed under the previous partnership with Trump Plaza, but moving forward Caesars Interactive Entertainment will partner the license.
Betfair needs a land-based casino partner in order to operate its online casino activity in New Jersey according to gambling regulations in the state. These regulations were formed in 2013 as part of the agreement to legalise online gambling in New Jersey. All online casinos must link up with one of Atlantic City’s land based casinos to be granted a license to operate.
The department which sets these rules and regulations, The New Jersey Division of Gaming Enforcement (or DGE) awarded both Betfair and Caesars Interactive Limited a conditional six month approval for a Data Centre Sublicense Agreement. This basically allows Betfair to keep its online casino running smoothly, whilst simply relocating servers, hardware and infrastructure to one of the Caesars’ properties within New Jersey.
The Director of the New Jersey DGE, David Rebuck, made a statement about the agreement and is confident of a smooth transition over to Caesars for both Betfair and its players. He believes there will be minimal disruption and that the DGE will ensure it cooperates and accepts inputs form all involved parties to make this happen.
As the license is conditional, the agreement would need to be looked at again in a few months down the line. If the license becomes permanent, it could open up a whole new wave of possibilities for Betfair and Caesars.
For example they could venture into new online gaming sites, perhaps one bearing the Caesars brand. However this is not stated in the order and neither parties have made it clear whether this is part of their future partnership plans or not. Should they wish to venture down this road, another gambling license application would need to be submitted to the governing body, the DGE.
This all seems like positive news for Betfair, not to mention online gaming fans. The prospect of more variety in online casino sites in New Jersey would no doubt be welcomed by these fans, however if Betfair and Caesars continue to grow online they could find themselves becoming leaders in a very restricted market. Since the regulation requirement to be tied to a land based casino was introduced just last year, four out of 12 Atlantic City casinos have either already closed their doors or have announced that they intend to soon.