Sports betting propelled New Jersey’s online gaming industry to new heights in September. The state’s online casino, online poker, and online sports betting operators generated $38 million collectively, with $12.6 million of that coming from sports betting.
NJ sports betting — the state’s shiny new toy — is grabbing most of the headlines, but don’t sleep on NJ online casinos. September was online casino’s strongest month in its five-year history, and the combination of online casino and poker produced its second best month to date.
Top line numbers
Here are the top line numbers from the New Jersey Division of Gaming Enforcement’s latest monthly revenue reports.
Revenue by vertical:
- September 2018 online casino revenue: $24,142,472
- September 2018 online poker revenue: $1,609,989
- September 2018 online sports betting revenue: $12,567,785
- September 2018 total online gambling revenue: $25,752,461
- September 2018 total online gambling revenue w/sports: $38,320,246
Online casino key takeaway
There is no slowing down the NJ online casino train. Online casino revenue grew by roughly 30 percent in September. Backchannel chatter indicates some of that growth is due to cross-selling from sports betting.
Online poker key takeaway
Online poker is in a prolonged period of decay.
Despite the best efforts of regulators (entering into an interstate agreement with Nevada and Delaware), online casino and online poker revenue continue to diverge.
Online sports betting key takeaway
NJ online sports betting has come out of the gate with its pedal to the metal.
Even though only a handful of operators are operational, online sports bets accounted for more than 50 percent of all NJ sports betting revenue in September.
New Jersey’s online performance should act as a wakeup call for states considering Nevada’s on-property registration model.
Here’s a look at the Y/Y changes:
- Online poker: -15.36 percent
- Online casino: +30.57 percent
- Total revenue: +26.29 percent
As seen in the chart below, the NJ online gambling industry has yet to experience a year-over-year decline in any month (this chart doesn’t include sports betting revenue).
Casino by casino analysis
Borgata is still second best in NJ
September was a good but not great month for Borgata.
Golden Nugget showing no signs of slowing down
Golden Nugget had its second-best month to date, as it eclipsed the $9 million mark for the second time. Golden Nugget’s online casino market share is now a staggering 38.5 percent.
Tropicana making changes
Tropicana has been stuck in a rut for quite some time. Despite steady revenue numbers, the new owners (El Dorado) sacked the entire online division in what may be an attempt to reinvent its online presence.
Resorts crushing online sports revenue
Resorts posted typical numbers for online casino, but its dominance of the NJ online sports betting market is Golden Nugget-esque.
Resorts generated $8.5 million of the $12.5 million in online sports betting revenue, the bulk of which by DraftKings Sportsbook.
August 2017 was one of Caesars’ best months. August 2018, not so much.
Total online casino revenue fell by more than 20 percent Y/Y and almost 7.5 percent month-over-month. Still, Caesars total online gaming revenue was right around $3.5 million for the month.
Hard Rock gaining market share
- License holder: Hard Rock
- Brands and sub-brands: Hard Rock online casino
Hard Rock’s online casino is quickly gobbling up some market share and looks like it will be a serious player in the not too distant future.
Ocean Resort posts a revenue decline
- License holder: Ocean Resort Casino
- Brands and sub-brands: Ocean Resort
Unlike Hard Rock, Ocean Resort online casino’s revenue fell month-over-month. That’s not a good sign for the fledgling operation.
A historical look at iGaming 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.