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MGM is cautious on internet poker in Nevada

MGM and other land based operators have granted a license to operate internet poker websites in both Nevada and New Jersey states... but MGM Resorts International is taking a cautious line on this, thinking the state is too small to provide a lucrative online market.

The group still undecided on whether to launch an online poker website in Nevada, as the state should be too small and the investment required to operate that space have to be studied.

"We have to make an assessment on the cost to operate that space. We haven't ruled it out, but we haven't given it a green light either. We're not going to be the first or a pioneer from the state's perspective.", said Dan D'Arrigo.

Reports show that Nevada is expected to generate only $50 million to $250 million in annual revenues while New Jersey is expected to generate $500 million to $1 billion yearly.

"Our preference is for something to be done at the federal level. We're focused on these state by state initiatives, but it makes (operating) more challenging and more complicated. The opportunities are different in each state. Hopefully states will compact with one another and that will create liquidity and critical mass.", said Dan D'Arrigo (MGM group's chief financial officer).

MGM and Boyd Gaming have business deals with online poker companies like Bwin.party to provide poker software and other gaming services across the US, including Nevada and New Jersey.



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