May 2019 was the second-best month in the almost six-year history of New Jersey online gambling.
Overall, the state’s operators tallied $36.6 million in online gambling (casino and poker) revenue for the month, with online sports betting adding another $13.7 million to the industry’s revenue tally.
Top line numbers
Here are the top line numbers from the New Jersey Division of Gaming Enforcement’s latest monthly revenue reports.
Revenue by online vertical, May 2019:
- Casino revenue: $36,542,906
- Poker revenue: $1,797,732
- Sports betting revenue: $13,719,559
Revenue totals, May 2019:
- Total online gambling revenue: $38,340,638
- Total online gambling revenue w/sports: $52,060,197
New Jersey online casinos have a pituitary problem?
Sports betting was expected to boost online casino revenue through cross-selling, but I don’t think anyone expected the results New Jersey operators have experienced.
May marks the sixth consecutive month where online gambling growth was more than 40%, with growth over 50% in four of those months.
Here’s a look at the Y/Y changes:
- Online poker: -5.30%
- Online casino: +64.25%
- Total revenue: +58.93%
As seen in the chart below, the New Jersey online gaming 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 gaining ground
- License holder: Borgata
- Brands and sub-brands: Borgata, Party, Pala, playMGM
- Market share: 15.4% (+.5% M/M)
Borgata is the third online operator to separate itself from the pack. With a 15% market share and nearly $6 million in online gambling revenue, Borgata is now in Resorts and Golden Nugget territory.
What makes Borgata’s recent surge all the more interesting is it’s done it without a strong online sports betting presence. With the recent launch of the Borgata Online Sportsbook, the current growth could accelerate in the coming months.
Golden Nugget still on top
- License holder: Golden Nugget
- Brands and sub-brands: Golden Nugget, Betfair, SugarHouse, BetAmerica
- Market share: 36.7% (-1.3% M/M)
Golden Nugget’s market share dropped by 1.3% in May, but the casino is still head and shoulders above all competitors in the NJ online gambling market.
Golden Nugget recently announced it’s expanding the hours of operation of its live dealer studio, which should bring in even more revenue down the road.
Tropicana falls out of the trail pack
If the New Jersey online casino market was a children’s fable, Tropicana would be the tortoise from Aesop’s The Hare & the Tortoise.
The problem is, the analogy only extends to the strategy. It’s unlikely Tropicana’s slow-and-steady approach is going to win the race.
Resorts has hit a plateau
- License holder: Resorts AC
- Brands and sub-brands: Resorts, Mohegan Sun, PokerStars NJ, DraftKings casino
- Market share: 20.8% (+1.3% M/M)
May was a good month for Resorts Casino’s online sites.
That said, Resorts appears to have hit a plateau after coming on like gangbusters following the launch of the DraftKings online sportsbook.
Still, the casino has an impressive 20% market share and looks to have a firm hold on the number two spot in the market for the foreseeable future.
Caesars quietly gaining market share
- License holder: Caesars
- Brands and sub-brands: 888, Caesars, Harrah’s, WSOP
- Market share: 11.7% (-.8% M/M)
Caesars’ market share fell a bit in May, but the casino giant has made a lot of progress in the NJ online casino market this year.
Like Borgata, Caesars gains have come without much help from NJ online sports betting, so it will be interesting to see if a competitive online sports betting product can cause a Resorts-like surge for Caesars down the road.
Hard Rock can’t get over the 5% hurdle
- License holder: Hard Rock
- Brands and sub-brands: Hard Rock
- Market share: 4.0% (-.3% M/M)
Hard Rock held steady in May, and it appears that after a fast start, the city’s newest addition has leveled off. Online market share has been stuck at around 4-4.5% for several months.
Ocean Casino Resort is in trouble
- License holder: Ocean Casino Resort
- Brands and sub-brands: Ocean Resort
- Market share: 1.2% (+.4% M/M)
Ocean grew its market share in May, but at 1.2%, the gains are largely insignificant.
That said, a few rumors are floating around about Ocean Casino’s online offerings, and suffice it to say, a major change is sorely needed.
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.