New Jersey Online Gaming Industry Begins 2017 With A New Revenue Record

Posted By Steve Ruddock on February 15, 2017

[toc]The New Jersey online gambling industry kicked off 2017 the way it ended 2016, setting a new revenue record and looking for all intents and purposes like its best days are still ahead of it.

New Jersey’s streak of nine consecutive months of 30 percent or greater growth may have (barely) come to an end in January, but by any measure it was a tremendous month for the industry.

January 2017 saw total online gaming revenue surge to a record-setting $18.8 million, good for more than 28 percent year-over-year growth.

The state of New Jersey collected $2.8 million in tax revenue from online gambling operators in January 2017.

And for all the naysayers, since the industry launched in November 2013, New Jersey’s licensed online gaming operators have generated nearly $500 million in gross gaming revenue, resulting in $75 million in tax revenue for the state.

Top line numbers

Along with setting a new revenue record for total online revenue, poker and casino were both up year-over-year in January.

  • Online poker: +9%
  • Online casino: +32%
  • Total revenue: +28%

Here are the top line numbers from the New Jersey Division of Gaming Enforcement’s latest monthly revenue reports:

  • January 2017 online casino revenue: $16.5 million
  • January 2017 online poker revenue: $2.3 million
  • January 2017 total online gaming revenue: $18.8 million
  • Year-to-date online gambling revenue: $18.8 million

As seen in the chart below, the New Jersey online casino industry has yet to experience a year-over-year decline in any month.

Top line analysis: New front runners begin to emerge

After months of parity, two operators are beginning to separate themselves from the pack in the New Jersey online gaming market: Golden Nugget and Caesars.

In May 2016, Borgata was the clear market leader:

  • Borgata: 24%
  • Caesars: 20%
  • Tropicana: 19%
  • Golden Nugget: 19%
  • Resorts: 18%

By September 2016 the New Jersey online gaming market was a virtual five horse race:

  • Golden Nugget: 22%
  • Borgata: 21%
  • Caesars: 20%
  • Tropicana: 19%
  • Resorts: 18%

As the chart below demonstrates, New Jersey is now being dominated by Golden Nugget, with Caesars in second position:

Macro analysis

Borgata’s slide continues

If the New Jersey online gambling market was a marathon, Borgata sprinted out of the blocks and was never challenged for the first 25 miles of the race.

But, it faded fast in the last mile and competitors (Golden Nugget and Caesars) have left Borgata in the rearview mirror.

Golden Nugget cements itself as the market leader

After amassing $4.8 million in online casino revenue for the second consecutive month, Golden Nugget is fast approaching a 25 percent market share and has stamped its place as the industry leader.

Remarkably, Golden Nugget is doing this entirely on the online casino side, where it has a 29 percent market share.

Tropicana’s revenue stable but concerning

Tropicana was an early success story in the New Jersey market, but the property’s online casino sites have been stagnant for over a year. The lack of growth could lead to declining revenues for Tropicana when more online casino sites inevitably enter the market.

[show-table name=cta-tropicana]

Resorts settles in

Over its first 14 months, Resorts was growing by leaps and bounds.

But since it hit its high-water mark in April 2016, Resorts has been struggling to stay above the $3 million mark, something it accomplished only once from May 2016 to October 2016; Resorts generated $3,052,298 in July 2016.

Over the past three months, Resorts has consistently been in the $3.1 million to $3.2 million range.

Caesars eclipses $4 million

Nobody has turned things around more than Caesars.

A year ago, Caesars was bringing up the rear. Now the Caesars online gaming sites have surpassed $4 million in total revenue and trail only Golden Nugget in terms of online casino revenue.

Historical look at NJ online gambling revenue

Be sure to check our New Jersey online gambling revenue page for a detailed breakdown of online gambling revenue in the Garden State.

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Steve Ruddock

Steve covers nearly every angle of online poker in his job as a full-time freelance poker writer. His primary focus is the developing legal and legislative picture for regulated US online poker and gambling.

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