Caesars: 91% of Our Online Customers in New Jersey Were Not in Our Land-Based Database

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If the experience of Caesars is representative of the market at large, regulated online gambling in New Jersey is attracting thousands upon thousands of completely new customers to operators in the state.

That’s per testimony from David Satz, senior vice president of government relations and development, Caesars Entertainment Corp, who was speaking in front of the Pennsylvania House Democratic Policy Committee.

View the full agenda for the hearing here and a handout of the presentations here.

9 out of 10 online customers new to Caesars

Satz told Pennsylvania lawmakers that some “91% of the players that we have derived in our New Jersey experience are customers who we did not know, that were not part of our 40 million person database.”

Also of note, continued Satz: “Of the 10% that we did know, we’ve actually seen increased play and increased visitation to our sites.”

In his presentation, Satz indicated that those existing Caesars customers boosted their land-based play by 11% after signing up online.

“So this idea that online poker is somehow going to cannibalize has no factual basis,” Satz concluded.

Caesars offers both casino and poker games online to customers in New Jersey. Poker is offered under the brand and casino play is offered under the Caesars and Harrah’s brands.

Stat adds to counter-cannibalization evidence

Critics of regulating online gambling often assert that doing so will only shift revenue from land-based casinos to online ones, resulting in a net cannibalization of land-based casino revenue.

But Satz’s statistic adds to the growing arsenal of quantitative evidence that regulated online gambling is additive to land-based gambling – a largely new source of revenue, and a channel that will both attract a new generation of customers while providing a method for deeper engagement with existing customers.

- Chris is the publisher of Grove also serves as a consultant to various stakeholders in the regulated market for online gambling in the United States.
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