New Jersey iGaming Market Posts Second-Highest Month in AprilMay 15, 2018 1:21 pm
In April, New Jersey’s online gambling market saw its revenue rise by 10.6% to $23 million versus the same month in 2017, with the amount posted second only to the record $25.6 million collected in March 2018. As a result, the Garden State has now generated $92.5 million over the first four months of this year, up by 15.5% compared to the same period of time last year.
In an all too familiar pattern, online casinos continue to support the industry, and in April its revenue soared by 12.7% to $21.25 million, while online poker resumed its negative trajectory with its earnings sinking by 10.5% to $1.76 million.
Online Poker Hoping For Better Days
Online poker’s revenue of $1.76 million in April was its second worst to date, and was down by roughly 10.5% on both a month-on-month and year-on-year basis. On the plus side, New Jersey joined a shared online poker network on May 1st, providing hope that the new tri-state venture might help spark a much needed revival in the free falling vertical.
Further positive developments in store for online poker includes the Ocean Resort Casino and Hard Rock Atlantic City opening for business on June 28, with the two new casinos also set to offer online gambling options, including poker.
Online Casinos Post Rare M-O-M Loss
While April’s online casino revenue rose by 12.7% year-on-year to $23 million, its month-on-month (MOM) revenue was actually lower by 10% versus the $20.8 million taken in April 2017. The drop-off comes as little surprise, though, considering March is traditionally the industry’s strongest month, although its double digit fall is a slight cause for concern. In April 2015 and 2016, for example, revenues shrunk by just 4% from March’s tally. Nevertheless, this April’s results are still impressive overall, with the 10% fall most likely no more than a temporary glitch in an overall positive trend.
iGaming Operator Rankings
The Golden Nugget topped New Jersey’s iGaming market in April, with its online casino only offerings producing $8.13 million in revenue, while the next biggest, Borgata, produced just over half that amount or $4.6 million, with poker accounting for $514k of the tally.
Meanwhile, Resorts Digital Gaming was third with around $3.6 million, of which $800k was derived from online poker, followed by Caesars Interactive Entertainment with $3.5 million (poker $449k), and finally Tropicana’s casino-only operation with $3.17 million in April.
Land Casinos Up By 0.3%
New Jersey’s land-based and online operations generated a combined $214.4 million in April, representing a 1.3% improvement compared to the previous year. Once online gambling is removed from the results, however, the state’s land-based revenue of $191.4 million was only up by a mere 0.3%, meaning that the online gaming sector is currently responsible for providing traditional casinos with their current revenue boost.
As in the online world, Borgata Hotel Casino & Spa also rules the land-based arena with $57.7 million in revenue, albeit with that figure lower by 7.9% from the same month in 2017. Meanwhile, Atlantic City’s oldest casino, Resorts Casino Hotel, posted the biggest percentage gain of 23.3% to $17.2 million versus the $13.9 million taken in April 2017.
Sports Betting Impact
For the year so far, New Jersey’s land-based casino revenue has fallen by 6.1% to $716.7 million from the $763.5 million posted in the same period last year, with that number improving to 4.1% when online gambling revenues are included. Nevertheless, the situation is expected to change dramatically following the US Supreme Court’s decision to allow legal sports betting across the country, and as James Plousis, chairman of the Casino Control Commission, explains:
“I anticipate sports wagering will fuel future growth for the casinos and add a new attraction for visitors on top of the expected opening of the Hard Rock (Hotel & Casino Atlantic City), which we licensed last week, and Ocean Resort (Casino). Put all that together, and it should be a strong summer and a brighter future for New Jersey’s gaming industry.”