This month marks the eighth anniversary of the NJ online casino industry launch. Yes, it’s pretty big news.
However, it’s not going to top Wednesday’s big headline: 2021 NJ online casino revenue tops $1 billion. And this would be a Garden State first.
However, NJ is not the only state to achieve the milestone. It just so happens neighboring Pennsylvania reported over $1 billion in 2021 revenue the same exact day.
So the industry is showing no signs of slowing down.
For the month, the eight license holders reported $127 million in online gambling revenue, which is a 35.9% year-over-year increase. And by the way, it’s yet another monthly record.
Here is a closer look at five reasons why New Jersey is now home to a booming $1-billion-plus industry.
1. 2021 theme: It’s another record month
For those who haven’t been keeping track, NJ online casinos just reported a $100-plus million month for the ninth time this year. February was the only month to miss the cut.
This is one of those years where a new bar is set just about every month. Many current operators are reporting record results on nearly a monthly basis. The strength of the NJ market and favorable tax rates also make it attractive for other companies still looking to get a piece of the pie. Bally’s Atlantic City, for instance, currently only has PointsBet Casino operating under its license. The Bally Bet brand could be rolled out later this year or during Q1 of next year.
And there are several other brands with market access deals via the Ceasars Interactive license.
How long will the current $127-million record stand? How much longer will it take for New Jersey to report its first $130-million performance?
Three out of the last four months have been all-time records and the trend will very likely continue for November and December.
But as far as the most recent totals go, here is the October NJ online casino revenue breakdown:
|Licensee||Total Revenue||Casino Revenue||Poker Revenue||State Tax||Local Tax|
|Golden Nugget Atlantic City||$34,499,840||$34,499,840||$0||$5,174,976||$862,496|
|Resorts Atlantic City||$29,298,517||$28,674,624||$623,893||$4,394,778||$732,463|
|Caesars Atlantic City||$8,939,563||$8,064,566||$874,997||$1,340,935||$223,489|
|Tropicana Atlantic City||$7,643,532||$7,643,532||$0||$1,146,530||$191,088|
|Hard Rock Atlantic City||$5,916,246||$5,916,246||$0||$887,437||$147,906|
|Bally's Atlantic City||$269,768||$269,768||$0||$40,465||$6,744|
2. NJ online casinos celebrate 8 years of eye-opening growth
So in celebration of the NJ online casino industry turning eight, let’s take a quick look back. If we revisit what now seems like prehistoric days, before NJ sports betting was legal, the results are not that impressive. For instance, NJ online casinos cracked the $10-million plateau for the first time in February 2014 with $10.3 million. Today, that’s a number that individual license holders shatter on a monthly basis.
The first $20-million-plus result didn’t come until March 2017 ($21.7 million). However, since mobile sports betting launched in August 2018, the numbers have been steadily increasing over time. Then when the global pandemic forced Atlantic City casinos to close for 100-plus days in 2020, NJ online casinos gained popularity as they were the only option.
The momentum has carried over into this year, reaching record levels some analysts likely thought they would never see.
And with the 10th anniversary now two years away, it’s hard to imagine how much bigger this mature market will grow.
3. NJ sports betting gets another assist
If we look back at recent NJ online casino history, some of the biggest revenue months have come during NFL and college football season. For October, the Garden State set a new NJ sports betting record with $1.3 billion in bets. By the way, it also happens to be a new all-time record for any legal American sports betting destination.
The news follows an extremely strong September when Garden State gamblers wagered just over $1 billion. And many of these customers are the ones also playing blackjack, slots and other casino games of choice every month, helping NJ online casino revenue achieve new highs month after month.
The combination of single-platform apps and a shared wallet across sports and casino continues to pay dividends. If we look back at recent months, some of the biggest betting months coincide with huge results on the casino side.
Besides the previously mentioned October results, September is another great example. The Garden State took in $1.01 billion in sports wagers while online casino revenue hit $122.6 million, which at the time was a record.
December 2020 remains No. 3 on the all-time list for NJ sports betting handle with $996.3 million. NJ online casinos reported $99.4 million for that month. It set the stage for a huge 2021.
4. Borgata and BetMGM closing in on $40 million month
Every month it seems Borgata, led by the BetMGM, Borgata and Party online casino brands, stands out in the monthly NJ revenue report. Month after month the license holder claims the No. 1 spot on the board. The 10-month total currently stands at $341.3 million, and that’s a year-over-year increase of 116.6%.
It’s also hard to ignore the $38.8 million reported for October, which is a 75.9% jump from the same period last year. This marks a new all-time monthly high for any license holder. The previous record of $37.2 million was just set in September.
So at this point, the idea of Borgata being the first NJ online casino license holder to report a $40-million month is looking more and more like a sure thing. With the most exciting and important part of NFL betting season still to come, it’s highly unlikely NJ gamblers will be cutting back their play.
This raises another question: At this point do we even know what the monthly ceiling will be for any license holder? Seriously, it wasn’t all that long ago when the entire market reporting $40 million in a single month was considered a big deal.
Don’t be surprised if $50 million by a single license holder becomes the new monthly bar for 2022. If we look back to last October, Borgata had reported a tad over $22 million.
5. The $30 million NJ online casino club
Take one glance at the October totals, and you see that three license holders are responsible for a bulk of the revenue. As mentioned above, Borgata/BetMGM is one.
The others are Golden Nugget Online Gaming (GNOG) and Resorts Digital. And when we say bulk, we mean an Internet gaming win of $29.2 million or better.
GNOG, led by Golden Nugget online casino, has been one of the industry heavyweights since the very beginning. The proof comes in the all-time revenue total of $1.06 billion. That ranks No. 1 all-time. Today, the GNOG license also includes the FanDuel, Stardust, Betway, SugarHouse and BetAmerica online casino brands. GNOG has reported $310.8 million, second behind Borgata, through the first 10 months of 2021.
Then there is Resorts Digital, up 38.4% year to date. 2021 revenue currently sits at $23o.3 million. They just missed hitting $30 million for October, but the $29.2 million is a new monthly all-time high. The recent addition of Barstool NJ Casino continues to pay dividends for the license holder.
However, DraftKings, Resorts, Mohegan Sun and PokerStars are contributing to the strong performance as well.
As far as year-to-date totals go, Caesars Interactive is a distant fourth with $92.6 million.
The all-time numbers are even more eye-opening. Here is a look at how all eight license holders accounting for more than two dozen online casinos have fared since the 2013 launch:
|Licensee||Total Revenue||Slots & Tables||Poker||Promos||Taxes|
|Golden Nugget Atlantic City||$1,725,314,671||$1,725,314,671||$0||$177,040,820||$301,995,477|
|Resorts Atlantic City||$1,282,526,416||$1,217,085,126||$65,441,290||$73,778,398||$222,709,967|
|Caesars Atlantic City||$605,598,340||$506,434,457||$99,163,883||$278,708||$103,517,767|
|Tropicana Atlantic City||$494,256,055||$494,256,055||$0||$59,674,602||$86,494,813|
|Hard Rock Atlantic City||$248,159,465||$248,159,465||$0||$6,128,216||$43,456,605|
|Bally's Atlantic City||$67,971,333||$67,971,333||$0||$9,925,123||$11,881,543|
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