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Online gambling company pulls out of New Jersey

Last year New Jersey legislators approved internet gambling operations to work within the state. The approval was based in large part on the economic downturn many of the state's casinos have faced and was expected to net New Jersey hundreds of millions of dollars. The industry has not bloomed as expected and now one company is pulling its online gambling services out of the state.

Ultimate Gaming was one of the first companies to manage online gaming in New Jersey but now is ending its operations. It will work with the state to ensure that its clients have online gambling options. Ultimate has not set a timeline for when it will completely close up shop in New Jersey.

The online gambling company was affiliated with the Trump Taj Mahal Casino Resort and shared a contract with it before Ultimate began winding down its business. Trump Entertainment Resorts, the entity that manages the Taj Mahal, closed one of its resorts, Trump Plaza, and may close the Taj Mahal later in the year due to problems with its unions. When casino resorts close their doors they must give back to the state their casino licenses. Without a casino through which to operate online gambling companies are left with few options.

Ultimate has allegedly lodged claims of breaches of contract against the Taj Mahal. Those allegations may have served as the impetus for Ultimate to take its business out of New Jersey. Ultimate is included as a creditor in Trump Entertainment's bankruptcy case and has claimed the failing business owes it around $1.5 million.

Business ventures can be risky but can also net huge rewards. Ultimate Gaming unfortunately suffered many setbacks when it affiliated itself with Trump Entertainment and now must work to secure the money it is owed from its former associate. Breaches of a corporate contract can have long-term consequences on a company fighting to succeed in a new industry.

Source: USA Today, "Ultimate leaving N.J. online gambling market," Wayne Parry, Sept. 19, 2014

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