[toc]Thirty-nine months after the industry first launched – in late November 2013 – New Jersey’s online gambling industry hit a significant milestone in February.
The state’s online gaming operators have now collectively surpassed a half-billion dollars in revenue. Yes, you read that right, that’s billion with a B.
This is a massive story for New Jersey’s oft-maligned online gaming industry.
It should bury, once and for all, any notion that NJ online casinos have been a revenue failure for the land-based casinos involved or the state.
February 2017 NJ online casino revenue at a glance
The state’s online gaming operators generated $18.7 million in the abridged month, falling just shy of the revenue record of $18.8 million that was set the previous month.
When averaged out by day, February 2017 easily bested January 2017, by over $60,000 per day:
- Daily revenue January 2017: $607,100
- Daily revenue February 2017: $668,646
The state of New Jersey collected $2.8 million in tax revenue from online gaming operators in February 2017, and is on track to surpass $100 million in taxes paid since launch before the end of the year.
Top line numbers
Here are the top line numbers from the New Jersey Division of Gaming Enforcement’s latest monthly revenue reports:
- February 2017 online casino revenue: $16,551,663
- February 2017 online poker revenue: $2,170,427
- February 2017 total online gaming revenue: $18,722,090
- Year-to-date online gambling revenue: $37,542,188
Total gaming revenue, poker, and casino all experienced substantial year-over-year increases in February.
- Online poker: +8.84 percent
- Online casino: +29.76 percent
- Total revenue: +26.93 percent
As seen in the chart below, the New Jersey online gaming industry has yet to experience a year-over-year decline in any month.
Market share analysis: Golden Nugget extends lead
If the industry didn’t transcend $500,000,000 in total revenue since launch this month, the big story would have been Golden Nugget’s continued assault on the monthly revenue record by a single operator.
Golden Nugget’s $5.1 million month in February is an especially impressive feat when you factor in the shortened month.
But Golden Nugget has been trending upward for months, and it’s safe to say the other operators in the market should start taking a closer look at what Golden Nugget is doing that they’re not.
It wasn’t always this way. From the industry’s earliest days to May 2016, it was Borgata that was the top dog in New Jersey:
- Borgata: 24%
- Caesars: 20%
- Tropicana: 19%
- Golden Nugget: 19%
- Resorts: 18%
By September 2016 the New Jersey online gaming market had tightened into a virtual five horse race:
- Golden Nugget: 22%
- Borgata: 21%
- Caesars: 20%
- Tropicana: 19%
- Resorts: 18%
Over the past six months or so Golden Nugget, which is still the only NJ site to offer live dealer games, has separated itself from the pack and is now the clear market leader in New Jersey:
Casino by casino analysis
Borgata jumps back into the #2 hole
Borgata had a disappointing month on the online poker side of the ledger, down roughly 10 percent when compared to January.
However, a slight increase in casino revenue (one of only three online operators that saw online casino revenue rise MoM in February) kept total online gaming revenue steady MoM.
Golden Nugget eclipses $5 million
Golden Nugget’s online casino model is nothing short of remarkable.
Despite a late start due to early technical issues, and its decision to steer clear of online poker, Golden Nugget has managed to eclipse $5 million in monthly revenue. This, while its competitors struggle to produce $4 million months.
Tropicana ticks up
Only two operators saw total online gaming revenue rise month-over-month: Golden Nugget and Tropicana.
However, even with 5.5 percent MoM growth, Tropicana remains in a revenue stasis of sorts, as the casino continues to struggle to sustain any kind of growth or consistently reach the next milestone number, $3.5 million.
Resorts stays above $3 million
Resorts managed to stay above the $3 million mark, despite lower poker and casino revenue in February compared to January.
Like Tropicana, it appears Resorts has settled in at around the $3 million mark.
After singing its praises for several months, particularly in January when total online gaming revenue topped $4 million, Caesars fell back a bit in February. Month-over-month revenue was down over 13 percent.
That being said, there is a strong reason to believe a large jackpot is to blame for a significant amount or even all of the casino’s decline, considering revenue on the casino side was an outlier compared to the other operators, falling by nearly 15 percent.
Historical look at online gambling revenue in NJ
Be sure to check our New Jersey online gambling revenue page for a detailed breakdown of online gambling revenue in the Garden State.