The New Jersey Division of Gaming Enforcement revealed the first online gambling revenue numbers for 2018 on Wednesday and January was a record-setting month.
After tallying nearly $250 million in revenue over the course of 2017, NJ online casinos started 2018 off with its best month to date. Total NJ online casino revenue was just shy of $22 million in January, a new record for the industry.
January 2018 was the 11th consecutive month with revenues above $20 million, but the first time online casino revenue eclipsed the $20 million mark without the help of online poker revenue.
Top line numbers
Here are the top line numbers from the NJDGE’s January revenue reports:
- Online casino revenue: $20,011,643
- Online poker revenue: $1,950,696
- Total online gaming revenue: $21,962,339
- Year to date online gambling revenue: $21,962,339
Market shows signs of slowing growth
As has been the case for countless months, growth continues to come exclusively from online casino games, as online poker continues to be an albatross around the industry’s neck.
- Online poker: -16.6 percent
- Online casino: +21.42 percent
- Total revenue: +16.7 percent
New Jersey’s entrance into the Multi-State Internet Gaming Association (MSIGA) will hopefully see online poker numbers rise, or at least stabilize, once the state begins pooling its players with Nevada and Delaware.
As seen in the chart below, the New Jersey online gaming industry has yet to experience a year-over-year decline in any month.
There’s no signs of the market reaching maturity, but growth is waning.
The slowdown started at the tail-end of 2017, and that trend continued in January, with year-over-year growth of just under 17 percent for the month. That’s still a strong number, but it’s safe to say that the months of 30-percent-plus growth are over.
That said, there could be a growth spurt in the second half of 2018.
- Hard Rock AC and Ocean Resort Casino will launch online gaming websites.
- The launch of online gambling in Pennsylvania could open up a new market for NJ operators, as well as an advertising focus on the Philadelphia TV market, which extends deep into New Jersey.
- The interstate poker agreement New Jersey entered should stabilize the online poker market.
Casino by casino analysis
Borgata is the best of the rest
- License holder: Borgata
- Brands and sub-brands: Borgata Casino online, PartyPoker, Pala online casino, playMGM online casino
It was another $4 million month for Borgata, but all that has earned the company is the “best of the rest” moniker. Everyone, including Borgata, is straining their necks looking up at Golden Nugget.
Golden Nugget hits $7 million
- License holder: Golden Nugget
- Brands and sub-brands: Golden Nugget online casino, Betfair NJ online casino, SugarHouse online casino
After posting the industry’s first $7 million month, Golden Nugget now owns a 33 percent market share, and is on the verge of lapping its competitors.
It was Golden Nugget’s first $7-million month, fourth straight $6-million month, and 12th consecutive month of revenue above $5 million.
For perspective, no other New Jersey casino has put together a single $5 million month.
Tropicana was one of the early surprises in the market, but the casino seemed to run into a ceiling of sorts. More recently, Tropicana’s online gambling revenue has ticked down.
Resorts takes a small hit
- License holder: Resorts AC
- Brands and sub-brands: Resorts online casino, Mohegan Sun, PokerStars NJ casino
It was a solid month for Resorts, as revenue rose over 20 percent year over year.
Most of the gains were on the casino side, as Resorts’ online casino revenue ticked back above $3 million for the first time since May, and just the third time overall.
Caesars revenue continues to be chaotic
- License holder: Caesars
- Brands and sub-brands: 888 Casino, Caesars casino online, Harrah’s online casino, WSOP.com NJ
January was a down month for Caesars, as the three-headed monster continues to bounce back and forth between good months and bad months.
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.