The New Jersey online gambling industry kicked off 2019 with a new revenue record.
The Division of Gaming Enforcement released the latest revenue reports on Wednesday afternoon, and online gambling (poker and casino games) revenue came in at an astounding $33,594,391 in January.
That easily bested the previous record of $29,008,265 set last month and represents a 53 percent year-over-year increase.
Online sports added another $15,529,274 to January’s online gambling tally.
Altogether, NJ online sports betting, casino and poker accounted for nearly $50 million of the $230 million generated by New Jersey’s casino operators. That works out to almost 22 percent of all gambling revenue generated through online channels.
Lofty 2019 projections are in reach
With a $33.6 million month under its belt and no signs of a slowdown on the horizon, the NJ online casino industry appears capable of eclipsing the lofty $400 million prediction made by Eilers & Krejcik Gaming.
Based on the early returns, sports betting will add another $150 million-$200 million to that tally, for a total online gambling haul of up to $600 million in New Jersey.
Top line numbers
Here are the top line numbers from the DGE’s latest monthly revenue reports.
Revenue by vertical:
- January 2019 online casino revenue: $31,711,501 (record)
- January 2019 online poker revenue: $1,882,890
- January 2019 online sports betting revenue: $15,529,274 (record)
- January 2019 total online gambling revenue: $33,594,391 (record)
- January 2019 total online gambling revenue with sports: $49,123,665 (record)
Online casino key takeaway
NJ online casino revenue has experienced year-over-year growth every month since its inception. But since the launch of online sports betting that growth has been supercharged.
What’s spurring on this sudden spike?
Industry analyst Chris Grove speculates that sports betting is responsible for about 20 percent of online casino’s recent growth.
The two work really well together. Sports powering what I’d back-of-the-envelope as a 20% gain for casino. Some of that will wear off, but important to note that sports cross-sell has that impact despite only being live at ~half of state’s online casinos. https://t.co/RtsUtrI0HJ
— Chris Grove (@OPReport) February 13, 2019
Online poker key takeaway
Online poker revenue dipped just three percent in January, which is sadly one of the vertical’s best months in quite some time. Hopefully, that’s an indication that the NJ online poker industry has found its floor and revenue will level off going forward.
Online sports betting key takeaway
With nearly 80 percent of all wagers placed online, it didn’t take long for online sports betting to become the preferred channel to place bets in New Jersey.
Because of its high variance, we’re treating online sports betting as a separate entity, and it won’t be included in the analysis below.
Here’s a look at the year-over-year changes:
- Online poker: -8.9 percent
- Online casino: +44.8 percent
- Total revenue: +39.8 percent
As seen in the chart below, the New Jersey online gambling industry has yet to experience a year-over-year decline in any month (this chart doesn’t include sports betting revenue).
Casino by casino analysis
Borgata knocked off its second place perch
Borgata hit $5 million in December 2018 but fell back a bit in January.
More worrisome for the top land-based casino in the market is the aforementioned sudden surge of Resorts, which skyrocketed to well over $6 million in January, largely due to the addition of NJ online casino games by DraftKings.
Golden Nugget is the unstoppable Juggernaut
What can be said about Golden Nugget that hasn’t already been said?
Golden Nugget posted the industry’s first $10 million month in December and decided just to skip the $11 million milestone and go straight to $12 million in January.
That’s even more impressive when you factor in Golden Nugget’s lack of an online sportsbook.
Tropicana posts a typical Tropicana month
If Golden Nugget’s M.O. is growth, Tropicana’s is stagnancy.
The once prominent online casino has become a middling brand in the competitive market.
Resorts posts the best month by an operator not named Golden Nugget ever
- License holder: Resorts AC
- Brands and sub-brands: Resorts, Mohegan Sun, PokerStars NJ, DraftKings casino
Resorts’ January numbers are the first indication that someone can challenge Golden Nugget in the New Jersey online casino market.
DraftKings’ casino market share should continue to grow in the coming months as more games and titles are added to its catalog of casino products.
Caesars is on a hot streak
Caesars has put together a string of solid months of late, but the casino giant’s performance in the New Jersey online casino space is still a bit underwhelming.
Hard Rock online casino continues to impress
- License holder: Hard Rock
- Brands and sub-brands: Hard Rock
The newest entry into the market continues to gobble up market share, as Hard Rock’s online casino tallied $1.6 million in January.
The emergence of DraftKings and Hard Rock, coupled with continued growth among the existing operators seems to signal the New Jersey market is nowhere near maturity.
Ocean Resort is struggling
- License holder: Ocean Resort Casino
- Brands and sub-brands: Ocean Resort
Like its previous incarnation, Ocean Resorts finds itself in dire straits. The property has struggled to gain land-based or online market share, and like Revel, which is possibly headed to bankruptcy court.
A historical look at iGaming revenue in NJ
Be sure to check our New Jersey iGaming revenue page for a detailed breakdown of online gambling revenue in the Garden State.