New Jersey Online Gambling Generates Bumper $24.3M in May

New Jersey Online Gambling Generates Bumper $24.3M in May

New Jersey’s online gambling market enjoyed its second best month to date in May, with the state’s seven casinos generating $24.3 million in revenue, or 15.3% more than the same month last year. Furthermore, the total was just $1.3 million less than the record $25.6 million set in March of this year.

Key Market Numbers

Following a familiar pattern, online casinos were responsible for the gains made in May, while online poker detracted from the results as it continued its ever downward trajectory. On balance, however, the $24.3 million in overall revenue collected last month was a 2.2% improvement compared to April, and a 15.3% increase year-on-year.

Prior to this year, the Garden State’s iGambling industry hadn’t produced more than $22 million in any single month, but in 2018 alone has now seen three consecutive months in which revenues have surpassed $23 million. As a result of the impressive numbers, total online gambling revenue for the first five months of 2018 are currently up by 15.5% at $116.8 million, with online casino higher by 19% at $107.5 million, but poker down 13.5% to $9.4 million.

Online Casino vs iPoker

In May, New Jersey’s online casino revenue amounted to $22.3 million, marking a 1.9% improvement versus the previous month, and a massive 18% increase year-on-year. Meanwhile, poker contributed a further $1.9 million to the industry, which was 6% higher than in April, but 9% less than the same month a year earlier.

Poker’s year-on-year decline comes despite New Jersey, Nevada, and Delaware implementing their shared liquidity agreement at the start of May, perhaps suggesting that the, which operates across all three regulated states, has merely cannibalized some of the existing custom from other sites.

Market Leaders

As expected, the Golden Nugget’s online casino-only operation dominated New Jersey’s iGambling market after collecting an impressive $8.6 million last month, which was $470k more than in April, and a mere $50k short of its all-time high in March.

In second place was the Borgata’s online gambling sites, whose $4.6 million in revenue was fairly flat compared to the previous month, with poker accounting for $443k of the tally. Not far behind was Caesars Interactive Entertainment on $4.1 million, up by $600k from April, with the $770k collected from poker indicating that the multistate WSOP/888 network was beginning to bear fruit for the partnership.

Next, Resorts Digital Gaming generated $3.6 million, of which $717k derived from PokerStars NJ, while in last place was the Tropicana’s casino-only site with $3.4 million.

Casino Gambling Falls 5.1% Overall

Including the revenue produced by Atlantic City’s land-based casinos, overall business was down by 5.1% to $217.6 million in May. Offering an explanation as to the decline, Casino Control Commission Chairman James Plousis pointed towards a particularly difficult comparison in which last May the state’s casinos enjoyed an unusually lucky run at the tables. In any case, Atlantic City casinos have now taken roughly $1 billion for the year so far, or 4.3% less than the same period in 2017.

Good News Ahead

New Jersey is set to benefit from a number of additions to the industry in the coming weeks, including the Hard Rock Hotel & Casino and the Ocean Resort Casino open their doors for business on June 28th. Furthermore, New Jersey Gov. Phil Murphy signed off on New Jersey’s sports betting bill (AB 4111) on Monday, with Monmouth Park Racetrack in Oceanport expected to be the first venue to start offering legal sports bets in the state this Thursday.

Commenting upon the exciting developments set to transform the Garden State’s gambling market, James Plousis stated:

“I do anticipate that gaming revenue will increase this summer with the addition of new casinos, sports betting and a wealth of new attractions, amenities and entertainment. With that also comes more tax revenue, more jobs and increased economic activity for the entire region.”