Online casinos are a large part of the gaming industry in New Jersey. Is one online casino app outpacing the others to the point of domination of the market?
If so, and if you also believe it is FanDuel, how can competitors catch up?
According to market research into usage tendencies from mobile application users, FanDuel Casino is engendering more loyalty than other online casinos. Is there any chance for the likes of DraftKings, Caesars Palace, or BetMGM to keep pace?
It’s true that the Division of Gaming Enforcement does not disclose revenue by specific operator, making revenue reports from online casinos in New Jersey somewhat murky in the state.
But trends revealed from recent analysis by Eilers & Krejcik Gaming (EKG) reveal that users who download FanDuel Casino are far more likely to still use the app 60 days later than users of other online gaming applications.
Which online casino is the actual leader in New Jersey?
We can only speculate on which casino apps are most popular in New Jersey. The state does not release hard numbers, or even soft numbers, for standalone online casino platforms. But, based on the markets elsewhere in the US, as well as downloads and time on app data, it seems FanDuel is among the top apps.
We know that New Jersey generates a large amount of tax revenue from online casino play. Since it launched such apps, there has been more than $1 billion in taxes paid to New Jersey, based on over $7.4 billion in revenue by operators.
New Jersey has one of the oldest and most mature online gaming markets. It was also one of the first states to launch online sportsbooks following the landmark 2018 decision by the US Supreme Court that tossed that matter into the laps of the states.
Taking advantage, FanDuel Casino NJ entered into the Garden State courtesy of a partnership with Golden Nugget, which has amassed around $2.1 billion in total revenue. (Golden Nugget also provided an avenue for its own online casino as well as those of BetRivers and Betway.)
Only Borgata (which boasts BetMGM among its various partners) and Resorts (with DraftKings) have eclipsed $1.5 billion. But neither has broken through the $2 billion barrier.
FanDuel Casino leads in retention rate among users
It’s about more than revenue numbers, however.
In their newsletter, EKG Line, the company shared research showing that FanDuel saw 5% of its users still using their online casino app 60 days after downloading it.
While that may seem low, it’s nearly two percentage points higher than BetMGM Casino, and more than double the rate of rival DraftKings.
Still, EKG suggests that the door is wide open for online casinos to gobble up market share.
“The US market, from an app quality perspective, remains homogeneous and largely uncontested,” wrote EKG.
“In 2024, we expect market leaders to strengthen their product advantages, but there is still room for smaller brands to make noise in the market…”
Many online casino apps ripe for download in New Jersey
During earnings calls late last year, executives for FanDuel and DraftKings shared their thoughts with their respective investors regarding the “who’s No. 1” issue.
For his part, Peter Jackson, CEO of FanDuel parent company Flutter Entertainment, indicated that his group owns “a billion dollars more in revenue in the US, so we’re very clearly number one.” He added that FanDuel features stronger retention rates than competitors as well as a “long list of advantages” over the competition.
The New Jersey online casino market is crowded with competition – which obviously includes Caesars Palace Casino NJ and BetMGM Casino NJ – giving consumers in the Garden State many options for their online slots, baccarat and table games via the internet.
Other operators are also entering the fray, muddying the waters of online gaming. Jackpocket, which offers lottery ticket sales via an app, launched this past December. In November 2023, PENN relaunched Hollywood Casino in New Jersey. That app offers all of the popular games customers like in their platforms: hundreds of slots games, blackjack, progressive slots and pot games, and poker.
Despite all the competition in New Jersey, however, as it stands, at least according to EKG Line and FanDuel flag-wavers, FanDuel sits alone atop the NJ online casino throne. Now, it’s just a matter of how long it can remain there.