NJ Generates Record iGaming Revenues in February

New Jersey’s online gambling market has enjoyed an incredible start to the year and has now produced two straight months of record highs, having generated gross revenues of $21.96 million in January, followed by $21.99 million in February. The latest figure was also higher by 17.5% versus the $18.7 million collected in February 2017, and also marks 12 consecutive months of growth for the Garden State.
Commenting upon the spectacular results, gaming analyst Steve Ruddock, explained: “After growth slowed at the tailend of 2017, only the most optimistic projections could have predicted the start to this year for the online gambling industry. If February’s per-day haul is indicative of the coming year, we could see a $24 million month as early as March.”
Online Poker Down 24.2%
Online poker continued its downward slide in February, and produced total revenues of $1.8 million, representing a slight 0.6% increase compared to the previous month, but a sharp 24.2% drop versus the $2.17 million posted for the same month in 2017.
Of course, February had fewer days than in January, but all the same that alone would not account for the huge fall in year-on-year revenues. Online poker’s declining popularity is therefore a concerning trend that goes against the huge gains being witnessed in the online casino market, and provides little motivation for other states to consider legalizing and licensing the game in their own markets.
Online Casinos Up 22.7%
Meanwhile, New Jersey’s online casino market is like a runaway juggernaut, and managed to set a new monthly record in February despite the month being the shortest of the calendar. In total, the industry generated $20.2 million, marking an 11.9% gain compared to January’s figure, and a massive 22.7% improvement over February 2017. Furthermore, the industry produced daily revenues of $785,433 for the state, smashing the previous record set only the month before of $708,463 per day.
Golden Nugget Leading the Way
Much of the growth experienced last month can directly be attributed to the Golden Nugget, which followed up its record $7.3 million in revenues in January with a new high of $7.9 million in February, up by 8% from the previous month and by 53% year-over-year. In fact, the Golden Nugget, whose online casino partners includes Betfair and SugarHouse, has come to dominate the market so completely of late that Ruddock stated:
“Golden Nugget is no longer simply a front-runner in the New Jersey online market, it’s now lapping the field. It will be interesting to see if other New Jersey online casinos try to replicate the Golden Nugget’s strategies, which are clearly working.”
The factors which has made the Golden Nugget such a formidable force in New Jersey includes the operator specializing in online casino games only, which has helped it focus its marketing efforts more completely than its competitors, whilst concentrating on the most lucrative part of the online gambling industry. It also leads the field in the number of gambling products it offers, with its selection of games being updated on a regular basis. On December 23rd, the Golden Nugget also became the first land based casino to start offering online live dealer games, which have subsequently proved a huge boon for the operator.
Commenting upon its overall success, Thomas Winter, VP of Online Gaming at Golden Nugget, explained: “Since day one, we’ve been consistent in investing in this market, be that on marketing, product or user experience. That superior user experience comes in many different ways, from an ergonomic and slick user interface to exclusive games, fast withdrawals, 24/7 customer service, and dedicated VIP management.”
Other NJ Operators
While Golden Nugget leads New Jersey’s online gambling market by a country mile, Borgata (Borgata, PartyPoker, Pala, MGM) was the next biggest operator with revenues of $3,792,013; followed by Caesars (888, Caesars, Harrah’s, WSOP) with $3,192,267; Resorts AC (Resorts, Mohegan Sun, PokerStars NJ) with $3,775,736; and lastly Tropicana (Tropicana, Virgin) with $3,346,460.
Overall, New Jersey’s online casinos subsequently paid $3.85 million to the state by way of taxes in February, with the Garden State having now generated $134.3 million for state coffers since the industry was launched towards the end of 2013.
AC Casino Revenues Fall by 6.5%
Including land and online revenues, New Jersey’s seven casinos generated $192 million in February, representing a 6.5% loss worth around -$13.3 million compared to February of last year. Nevertheless, NJ Casino Control Commission Chairman Jim Plousis shrugged off the lackluster results by pinning the blame on a short, cold month, and expressed his optimism that business would soon turnaround as “we move into the busier spring and summer seasons.”
The Golden Nugget was the sole venue to post year-on-year growth in February with revenues up by 16% at $25 million. Posting the biggest decline, however, was Caesars down 23% at $17.5 million; followed by Resorts down 21% at $11.9 million; Bally’s down 12.8% at $14.2 million; Tropicana down 7.2% at $29.2 million; Borgata down 5.1% at $58.7 million; and finally Harrah’s down 4.3% at $28.2 million.