New Jersey online casinos had a record-breaking year in 2018. The industry broke its previous revenue record six out of 12 months. It nearly hit $30 million in December 2018, when it posted monthly revenue of $29,008,265.
Many things contributed to the industry’s success in 2018, most notably:
- Two new casinos opening with online gaming.
- Atlantic City’s revitalization efforts.
- New Jersey’s robust portfolio of online casino games, which includes the growth of live dealer games.
- The legalization and launch of NJ sports betting.
Can NJ casinos keep breaking records or has it hit the ceiling?
According to gaming experts at Eilers & Krejcik Gaming, the casinos should probably keep the record book on hand for some more entries.
Where will online casino revenue land in 2019?
Eilers & Krejcik predicted $289.3 million in revenue for NJ casinos in 2018. The industry finished the year with $298.7 million.
For 2019, the company estimates the NJ casino industry will grow by 35.7 percent and reach $401.5 million in revenue.
In most businesses, 10 percent year-over-year growth is considered a strong performance. Consequently, a prediction of 35.7 percent growth may seem high.
Eilers & Krejcik doesn’t think so when considering new NJ online casinos, sports betting, and casino integration into mobile sports betting platforms.
NJ online casinos + sports betting = good times
Regardless, the market is still growing as the brands focus on attracting new customers. That trend continues as evidenced in the monthly NJ online casino revenue reports and stands to impact revenue in 2019 significantly.
New NJ online casino brands include:
There is no doubt that NJ mobile sportsbooks have dominated the online gaming conversation in the Garden State since it launched in June 2018.
Sports betting and casino integration in mobile apps have the power to attract new customers to both industries. Although, NJ online casinos probably stand to benefit the most.
Online casino gamblers, with interest in sports, likely already have crossed over to place a bet on their favorite team. Even so, undoubtedly more will follow.
However, sports betting is in its infancy in the Garden State, and NJ online sportsbooks are entrenched in customer acquisition mode. Those customers may or may not have gambled online before.
Once online, and with the ease of a shared wallet, it is not a stretch to think a decent portion of new sports bettors will cross over to an online casino.
NJ sportsbooks with shared wallets are:
- DraftKings Sportsbook
- FanDuel Sportsbook (with Betfair NJ online casino)
- SugarHouse Sportsbook
- 888 Sport
- Caesars Sportsbook
- BetStars NJ
- Hard Rock
NJ online casinos will surpass $30 million in monthly revenue
Online casinos will need to exceed the $30 million mark in monthly revenue to earn the predicted $401.5 million. It flirted with the number for several months in 2018 and came the closest in December.
Eilers & Krejcik predicts it will finally top $30 million in March and stay at or above that number for the remainder of 2019.
The online casino revenue floor has been at $20 million since early 2017. It earned $21.7 million in March 2017 and hasn’t looked back. It seems like 2019 will be the year of hitting and setting a new floor of $30 million.
What about NJ online poker?
And while all this talk of potential revenue for online casinos is exciting, there is one segment of the industry that continues to struggle: NJ online poker.
Online poker ended 2018 earning $21.4 million in revenue. That figure was a 12 percent decrease compared to 2017.
Eilers & Krejcik estimates more losses for online poker. The company predicts poker will bring in only $18 million for 2019, a 16 percent decrease.
It was widely believed that the launch of shared liquidity would provide a much-needed boost to online poker. Unfortunately, it has had little effect.
For now, though, it doesn’t appear online casinos need poker to hit new revenue records. The casino industry seems to have it figured out.
There is one caveat to all this good news. The recently released new Wire Act opinion may have an impact, but what kind of impact is unknown. The predictions from Eilers & Krejcik do not take into account any action generated based on the controversial opinion.