[toc]Four straight months of record-setting revenue, and 16 straight months of year-over-year growth. That’s where New Jersey’s online gaming industry currently stands – a stark contrast to the industry’s much maligned CY2014 numbers.
Despite February being an abbreviated month (only by two days, thanks to 2016 being a leap year), for the fourth consecutive month New Jersey’s online gaming industry has set a new monthly revenue record, and for the third straight month the industry has eclipsed $14 million in monthly online gaming revenue.
By way of comparison, over its first 24 months, the New Jersey online gambling industry eclipsed $13 million in monthly online gaming revenue just once.
February also marked the first time four of the state’s online gaming operators eclipsed $3 million in monthly revenue in the same month. In fact, no more than two operators have ever achieved this milestone in the same month, which is a good sign for the viability of multiple operators in the market.
No end in sight to YoY growth trend
Year-over-year growth in New Jersey has been nothing short of astonishing over the course of 2015 and 2016, and February was no exception, as YoY growth hit 42 percent. It should be noted that February’s growth comes with a caveat, as a $1.5 million jackpot was hit in February of 2015, skewing the numbers quite a bit.
However, even accounting for this jackpot, YoY growth in February of 2016 was still 19 percent.
More importantly, there doesn’t seem to be a ceiling on the horizon that would stall the current growth trend, considering the market has experienced double-digit growth dating back to March of 2015.
Here is a look at the market’s percentage of YoY changes in 2016:
- January +26%
- February +42%
This is right in line with how the industry trended throughout 2015:
- January +18%
- February +9%
- March +10%
- April +10%
- May +19%
- June +23%
- July +24%
- August +16%
- September +15%
- October +22%
- November +51%
- December +31%
How did the individual operators do?
- Borgata: $4,236,733
- Borgata iPoker: $1,061,706
- Borgata iCasino: $3,175,027
- Caesars: $3,024,055
- Caesars iPoker: $932,359
- Caesars iCasino: $2,091,646
- Tropicana: $3,051,735
- Golden Nugget: $3,118,809
- Resorts: $1,313,388
Borgata drops but maintains seven figure lead
In February, revenue declined for Borgata by 7 percent compared to the previous month, but the casino continued its reign as top-top in the New Jersey online casino market, leading the way in online poker and online casino revenue, although Golden Nugget and Tropicana significantly closed the gap on the latter front thanks to both casinos having strong Februarys.
The Borgata will face its first real challenge when PokerStars soft launches on March 16, and there could be a significant shakeup in the market in the coming months.
Golden Nugget breaks $3 million
Golden Nugget had a terrific February, with revenue growing by nearly 20 percent month-over-month, which was enough to send the casino’s online gaming revenue past the $3 million mark for the first time since May of 2015.
Tropicana also breaks $3 million
Tropicana’s consistent ways continued in February, and a slight 5 percent month-over-month revenue increase nudged the casino over the $3 million revenue mark for the first time since March of 2015.
Resorts holds steady
The upward trajectory of Resorts hit a plateau last month, as revenue slipped ever so slightly from $1.43 million in January to $1.31 million in February.
However, as noted above, the Resorts online gambling brand is about to get a major shot in the arm with the planned launch of PokerStars on March 16. The PokerStars launch will add a third online casino brand to the network, but more importantly, an online poker site that is expected to quickly grab a major, likely majority, share of the market.
Depending on how things shake out, it’s not out of the question that Resorts could overtake Borgata as the top monthly revenue generator by the time summer rolls around. And even if it doesn’t overtake Borgata, the company’s upward growth line will certainly be reignited.
Resorts’ online gaming performance since launch:
- February 2015: $50,909
- March 2015: $154,071
- April 2015: $212,739
- May 2015: $324,662
- June 2015: $400,600
- July 2015: $558,316
- August 2015: $735,140
- September 2015: $944,299
- October 2015: $899,184
- November 2015: $1,215,832
- December 2015: $1,288,079
- January 2016: $1,434,295
- February 2016: $1,318,338
Caesars dips but continues three month $3 million trend
Caesars saw its online poker and online casino revenue dip from January to February, but the totality of its online products is still in a much better place than it was at this point in 2015.
Along with Borgata, Caesars is the most likely victim when PokerStars launches, as the market simply cannot support three online poker networks. It will be interesting to see which company has the stronger brand loyalty when it comes to their online poker platforms.
Historical look at online gambling revenue in NJ
*Data includes adjustments for 7-figure jackpots paid out in that month (a $1.3 million slot jackpot in June 2014 and a $1.5 million table game jackpot in February 2015).
Be sure to check our New Jersey iGaming revenue page for a detailed breakdown of online gambling revenue in the Garden State.