April 2018 was another strong month for New Jersey’s online casinos.
The month bested last year’s tally by more than $1 million but fell well short of the $25.6 million revenue record set last month.
The drop-off should come as no surprise. March is historically the strongest month of the year for the industry.
What is surprising is this year’s 10 percent month-over-month decline from March to April is well above what we’ve come to expect. Considering April 2018 was the second-best month in New Jersey online gaming history, this says more about the strength of the March numbers rather than a failing in April.
For some perspective, last year New Jersey online gaming revenue dipped by four percent from March to April. In 2015, the drop was three percent, and four percent in 2014. 2016 was an outlier year, as the industry grew month-over-month from March to April.
Top line numbers
Here are the top line numbers from the New Jersey Division of Gaming Enforcement’s latest monthly revenue reports:
- April 2018 online casino revenue: $21,257,358
- April 2018 online poker revenue: $1,761,404
- April 2018 total online gaming revenue: $23,018,762
- Year to date online gambling revenue: $92,553,436
NJ online casino is the breadwinner in the family
NJ online poker was near its historical low, but NJ online casino revenue eclipsed the $20 million mark for the fourth consecutive month as online casino revenue and online poker revenue continue to diverge.
- Online poker: -10.5 percent
- Online casino: +12.75 percent
- Total revenue: +10.55 percent
Things are about to get even more interesting
April’s online poker numbers were the second worst in its history.
However, those numbers weren’t impacted by the May 1 launch of interstate online poker between Nevada, Delaware, and New Jersey. The first effects of the agreement won’t be felt until next month’s revenue report and won’t be fully realized until the June and July reports. Those two months will coincide with what is expected to be the busiest time for the new US online poker network: the World Series of Poker in Nevada.
On top of interstate online poker, there’s another big development still on the horizon this summer. Not one but two online operators are expected to launch in June: Ocean Resort Casino and Hard Rock Atlantic City.
And of course, we’d be remiss to not mention this morning’s decision by the Supreme Court that found the federal sports betting prohibition known as PASPA unconstitutional. The decision paves the way for New Jersey, and other states, to legally offer sports betting.
As seen in the chart below, the New Jersey online gaming industry has yet to experience a year-over-year decline in any month.
Casino by casino analysis
Borgata settling into the number two spot
- License holder: Borgata
- Brands and sub-brands: Borgata, Party, Pala, playMGM
April was another solid month for Borgata. After four online gaming operators accomplished the feat in March, Borgata was the only operator not named Golden Nugget to surpass the $4 million revenue mark in April.
Golden Nugget reigns supreme
Golden Nugget’s dominance continued in April.
With its second consecutive $8 million month, Golden Nugget continues to lead the way, and now boasts a market share of more than 35 percent. No other online gaming operator has eclipsed $5 million in the history of NJ online gaming.
Tropicana’s slide continues
The once steady Tropicana is now the cellar-dweller in the New Jersey online casino market and continues to cede market share to its competitors.
Resorts has a solid but unspectacular April
After posting its best month to date in March, Resorts fell back a bit in April. That said, the $3.6 million haul in April 2018 was only a slight drop-off from its April 2017 numbers.
Caesars’ rollercoaster ride continues
Caesars is without a doubt the most volatile operator in the market. After surging out to one of its best months in March, April showers rained on its parade, with revenue dropping more than 20 percent M/M, from $4.4 million to $3.5 million.
A historical look at online gaming revenue in NJ
Be sure to check our New Jersey online gaming revenue page for a detailed breakdown of online gambling revenue in the Garden State.