Ultimate Gaming Announces Exit From New Jersey's Online Gambling Market
Ultimate Gaming, which last year became the first company to launch a regulated online poker room in the United States, announced on Friday that it is exiting the online gambling market in New Jersey.
The company has ended its online gambling partnership with Trump Taj Mahal Associates LLC in Atlantic City, 10 days after the casino filed for Chapter 11 bankruptcy protection.
Ultimate Gaming said in a press release that the agreement was terminated due to "multiple breaches by Trump Taj Mahal Associates." The company says it will cease operating in New Jersey in the coming days, but will continue to maintain its existing online poker operations in Nevada.
"We are grateful to the State of New Jersey and the New Jersey Division of Gaming Enforcement for allowing us to be one of the first companies to bring online gaming to the citizens of New Jersey and appreciate their leadership as one of the first states to allow online gaming," said Tom Breitling, Chairman of Ultimate Gaming. "We are working closely with the Division of Gaming Enforcement to ensure a smooth transition for our online gaming customers as we wind down our New Jersey operations."
New Jersey law requires gaming providers like Ultimate Gaming to partner with land-based casinos in order to offer services to customers located in the state. Ultimate inked a deal with Trump Taj Mahal Associates LLC in July 2013 to offer real-money online gambling in New Jersey, and the venture went live in November 2013.
On Sept. 9, Trump Taj Mahal became the fifth Atlantic City casino this year to announce that it will be closing its doors. The company said in a statement that it is expecting to close on or shortly after Nov. 13, 2014, ending 30 years of business on the boardwalk.
According to PokerScout.com, Ultimate Poker ranked fourth in real-money online poker traffic in New Jersey, trailing partypoker/BorgataPoker, WSOP.com, and the All American Poker Network/888. Chris Grove at OnlinePokerReport reported on Friday that, unlike Ultimate's competitors in NJ, the Taj Mahal failed to provide any support for the virtual poker room in terms of marketing or an online presence, leaving Ultimate at a "serious disadvantage."