NJ Online Gambling Revenues Down 8% To $10.47m In May

New Jersey has reported a decline in its nascent online gambling industry for the second month in a row, with revenues falling 8.39% to $10.47 million in May, compared to the $11.43 million generated in April. The situation is even more dire considering the Garden States’ igaming market, which is only 6 months old, has produced just $61.9 million in online revenues since launching, representing a mere fraction of the $1 billion in annual revenues predicted by Governor Chris Christie ahead of regulation.
From the $10.47 million produced by the state’s igaming operations, casino games generated $8.2 million in revenues, down 7% compared to the previous month, while online poker also contracted by 12% to $2.6 million. Although analysts predicted online poker would suffer as a result of seasonal trends, the results still came as a major disappointment for the industry, which had been getting used to between 9% (February) and 28% (January) growth rates before April spoilt the party.
In May, Borgata/partypoker continued to dominate the internet poker market, with revenues hitting $1,206,261, down 13.2% compared to the previous month. The partnership now represents 53% of the online poker market. Meanwhile, WSOP/888 produced 10.81% less revenues at $1,027,161, or 45% of the market; while Ultimate Poker revenues plummeted by 18.32% to $40,230, giving it a tiny 1.77% of the state’s internet poker industry.
Combining online poker and casino games, the Borgata (bwin.party) reported its first ever decline last month, with igaming revenues dropping to around $4 million in May, down from the $4.11 million taken in April. Nearest competitor, Caesars Interactive (888) also saw its revenues drop off from $3 million in April to $2.8 million in May; while Tropicana (Virgin/Gamesys) revenues fell to $1.9 million in May; Trump Plaza (Betfair) was down to $677,453; Trump Taj Mahal (Ultimate Gaming) was down to $497,728. The Golden Nugget, however, improved slightly to $610,949 from the $575,914 taken in April.
New Jersey’s casino industry also fell 8.2% to $232.3 million last month, although when the now shut Atlantic Club is excluded revenues were down by 3.1%. These figures do not include online gambling revenues. The results were skewed, however, by a particularly lucky month for punters, and as NJ Casino Control Commission chairman Matt Levinson, explains:
“The amount of money changed into chips at the tables, which is the drop, was up 0.4 percent in May, and that’s a very positive sign and an indicator of increased gaming activity. We all know how fickle Lady Luck can be, and last month she favored the players a lot more and the casinos won a lot less at the tables.”