NJ Online Gambling Made Almost $250 Million In 2017

Posted By Steve Ruddock on January 15, 2018

The New Jersey Division of Gaming Enforcement revealed the final online gaming revenue numbers for 2017 on Friday, and December didn’t disappoint.

New Jersey online gaming operators capped off a successful 2017 campaign with one of their best revenue months to date, and the tenth consecutive month  of revenue above $20 million.

For the year, online gaming tallied close to a quarter-billion-dollars in online gaming revenue, a 25 percent increase over 2016’s total, and double what the industry produced in 2014, the industry’s first full year of operation.

Top line numbers

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

  • Online casino revenue: $18,820,584
  • Online poker revenue: $1,937,061
  • Total online gaming revenue: $20,757,645
  • Year to date online gambling revenue: $245,605,982

Significant tax revenue

In addition to bolstering Atlantic City’s casino industry, online gaming has been a boon for the state.

New Jersey online casinos sent the state $3.3 million in tax revenue in December.

Since launch, New Jersey has received $126,584,578 million in tax revenue from online gaming.

Market shows signs of approaching maturity

As has been the case for countless months, growth continues to come exclusively from online casino games.

  • Online poker: -7.82 percent
  • Online casino: +15.60 percent
  • Total revenue: +12.92 percent

New Jersey’s entrance into the Multi State Internet Gaming Association (MSIGA) will hopefully see online poker numbers rise once the state begins pooling its players with Nevada and Delaware.

Growth trends

The New Jersey online gaming industry has yet to experience a year-over-year decline in any month.

With online gambling entering its fifth year, the market is showing some signs of reaching maturity. Growth is beginning to slow.

As seen in the chart below, Y/Y growth has eclipsed 30 percent just once since March 2017.

Growth may be waning, but New Jersey online gambling can expect continued growth in the 15-20 percent range throughout 2018 for the following reasons:

  1. Hard Rock AC and Ocean Resort Casino are expected to open in the summer and launch online gaming websites.
  2. Current operators are launching innovative new games, including live dealer products, virtual sports, and DFS-hybrid games.
  3. Assuming New Jersey casinos will be able to launch online gambling sites in Pennsylvania, there will be a new emphasis on advertising in the Philadelphia TV market, which extends deep into New Jersey.
  4. The interstate poker agreement should end online poker’s downward spiral and at the very least stabilize the market.

Casino-by-casino analysis

 

 

Borgata the clear number two in the market

The addition of the playMGM brand in September seems to have buoyed Borgata’s online gaming offerings. Borgata surpassed $4 million for the fifth consecutive month in December, and has taken firm control of the number two spot in the market.

Golden Nugget hits $6 million… again

Golden Nugget maintained its 30 percent market share in December with its third-straight six-million-dollar month. December also marked the eleventh consecutive month of revenue above $5 million.

No other New Jersey casino has put together a $5 million month, and Golden Nugget has accomplished that feat in 11 consecutive months. Let that sink in for a minute.

[show-table name=cta-golden-nugget]

Tropicana faltering

For the second consecutive month, Tropicana’s revenue was at the low-end of its usual range.

Tropicana’s place in the market has been stagnant for a couple years, which is both good and bad. However, with more casinos likely to launch online sites in 2018, Tropicana is one of the site more prone to cannibalization.

Resorts takes a small hit

A down month for Resorts has all the hallmarks of a sizable jackpot being hit in December. Online casino revenue was down almost 15 percent M/M.

Caesars revenue continues to be chaotic

As it’s wont to do, Caesars had a strong month in December after a trio of lackluster showings in September, October, and November.

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.

Photo by John Arehart / Shutterstock.com

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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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