New Jersey’s online casino industry had a solid, albeit unremarkable June.
However, it’s not all clear skies. Growth in the New Jersey online casino industry continues to slide toward 10 percent. It’s a far cry from the 30-40 percent growth the industry was producing not that long ago.
That said, the industry could see growth trends increase in the coming months thanks to:
- The interstate online poker association New Jersey joined in May is still nascent.
- The two new casinos that launched online casinos: Hard Rock Atlantic City and Ocean Resort Casino.
Top line numbers
Here are the top line numbers from the New Jersey Division of Gaming Enforcement’s latest monthly revenue reports:
- June 2018 online casino revenue: $20,926,255
- June 2018 online poker revenue: $1,757,839
- June 2018 total online gaming revenue: $22,684,094
- Year-to-date online gambling revenue: $139,540,151
NJ online casinos continue to chug along
At $1.75 million, online poker had one of the worst months in its five-year history, yet it still bested last year’s numbers.
Still, any growth, even one percent growth, in what is historically one of the worst months for online poker (the World Series of Poker was in full swing in Las Vegas) is a slight positive for an industry that has been declining for several years.
On the other side of the coin, online casinos in NJ continued the pattern of double-digit growth in June.
- Online Poker: +1.28 percent
- Online casino: +13.13 percent
- Total revenue: +12.11 percent
Interstate online poker still not moving the needle
Online poker revenue increased in June, but it’s safe to say that unlike Delaware, New Jersey isn’t reaping any benefits after entering into an interstate agreement with Delaware and Nevada. At least not yet.
The stagnant numbers could pick up now that the WSOP has concluded. The highest volume players will return to New Jersey, and hopefully, their presence (and an increase in the number of games available) will entice more casual players to give online poker a second look.
The new arrivals
Unfortunately, it’s hard to gauge the impact of either online casino at this point in time. Hard Rock opened at the tail-end of the month, with its online casino generating just a few thousand dollars.
That said, it will be interesting to watch both new casinos, Hard Rock and Ocean Resort, grab market share, and whether that market share comes via market expansion or cannibalization of existing operators.
As seen in the chart below, the NJ online gambling industry has yet to experience a year-over-year decline in any month.
Casino by casino analysis
Borgata is the clear cut number two in NJ
- License holder: Borgata
- Brands and sub-brands: Borgata, Party, Pala, MGM
Borgata stayed above $4 million in June, but its streak of three consecutive months above $4.5 million came to an end.
The Borgata Casino online and its skins continue to be the clear number two choice in New Jersey, but its lead over the casinos in third through fifth remains tenuous.
Golden Nugget: oops I did it again
- License holder: Golden Nugget
- Brands and sub-brands: Golden Nugget, Betfair, SugarHouse
It wasn’t a record-setter, but Golden Nugget did eclipse the $8 million mark for the fourth consecutive month in June. For some perspective, no other online gaming operator has produced a $5 million month.
Golden Nugget online casino and its partners continue to be the runaway leaders in the market, with a 37 percent market share.
Tropicana jumps up the standings
- License holder: Tropicana
- Brands and sub-brands: Tropicana, Virgin
June saw Tropicana hold steady with $3.6 million in revenue, but with Resorts and Caesars posting Y/Y declines, Tropicana was able to vault into third place as revenue grew Y/Y.
Resorts poker revenue takes a hit
Resorts’ online gaming revenue dropped 7.5 percent month-over-month and nearly 9 percent Y/Y.
The cause seems to be Caesars’ cannibalization of the other operators as its online poker market share increases following New Jersey’s entrance into interstate online poker.
Caesars online casino remains Jekyll and Hyde
Caesars jumped back above the $4 million mark in May thanks to a combination of $3.3 million in online casino revenue and the boost to its online poker revenue caused by interstate online poker.
June was a different story. Online casino fell to just $2.5 million, a drop of 25 percent M/M and 20 percent Y/Y.
The good news is online poker revenue nearly doubled Y/Y. Even though the interstate agreement hasn’t expanded the overall online poker market, it has done wonders for Caesars’ online poker sites.
Hard Rock enters the fray
- License holder: Hard Rock
- Brands and sub-brands: Hard Rock
There’s simply not enough data to properly review Hard Rock’s June tally.
Historical look at iGaming revenue in NJ
Be sure to check our New Jersey online casino revenue page for a detailed breakdown of online gambling revenue in the Garden State.