NJ online casinos absolutely obliterated their all-time revenue record in March, taking in $37.2 million, around $5.5 million more than their previous record achieved in January.
Four out of the state’s seven iGaming licensees broke their respective bests, with Golden Nugget and Resorts leading the pack, absolutely surging.
Sports bettors branch out at DraftKings
Resorts took the spotlight in terms of year-over-year profit increase, banking a whopping $7.85 million in online casino revenue, 127% more than it did in March 2018, and $1.8 million more than it did last month.
This is a far cry from the roughly $3 million/month the licensee was bringing in on average just last year. And why may that be? Resorts recent success is almost assuredly due to its partnership with Draftkings Sportsbook, which integrated an online casino into its product late last year.
Since then, the sports giant has steadily added more games, including a Live Dealer offering.
DraftKings’ patrons can easily switch from betting on sports to wagering on virtual casino games simply by clicking a button on the website interface.
That said, we attribute Resorts’ massive 2019 online casino growth to crossover traffic from the sportsbook. The effect may have even been amplified in March, with March Madness in full-swing, and players antsy to do something while waiting to see if their 4-leg parlay will hit home.
With money already sitting in their DraftKings account, betting on slots or table games is just a few simple clicks away.
Golden Nugget smashes the all-time licensee record
Golden Nugget, which also hosts Play SugarHouse, Betfair and BetAmerica, has for years been the top-earning NJ online casino licensee. Last month, it took things to the next level by raking in $14.2 million, a 64% year-on-year increase and an all-time monthly record for any Garden State iGaming licensee.
Golden Nugget also likely benefited from the integration of sportsbooks into its own platform and those of its partners.
While Play SugarHouse moved its sports betting license over to Monmouth Park in October, to get around restrictions on NBA betting, its online casino is still connected to Golden Nugget. Much like at DraftKings, Play SugarHouse sports bettors can move seamlessly to the site’s virtual casino library, and spend money on games which offer much higher margins to the casino than betting on sports.
Sports wagering is likely boosting Betfair Casino’s iGaming profits as well. Players at the FanDuel online sportsbook, which is partnered with The Meadowlands racetrack in NJ, will find a conspicuously placed Casino link at the top of the website, beckoning them towards slots and table games hosted at Betfair. Betfair Casino also shares account information and a wallet with FanDuel, increasing its crossover potential dramatically.
Bet America is also affiliated with Golden Nugget, and offers both sports betting and Internet casino games. The site, however, is fairly new and not as well known, so it probably hasn’t contributed much to the overall revenue bonanza.
There is one sportsbook connected to Borgata (playMGM) while Caesars and 888 Sport NJ operate sportsbooks under the Caesars license.
Hard Rock, for the first time and its short history, failed to improve on its previous month’s record, taking in $1.63 million, around $30,000 less than it did during the short February month. Perhaps the advantage team that took over $500k from the NJ online casinos (including Hard Rock) last month via an exploit found on the Golden Egypt slot had something to do with it.
Ocean, which recently changed its name (slightly) to focus on gambling, fell far short of its all-time record, posting just under $500,000 for the month, a 3% month-on-month gain.
NJ online poker stays flat
While the sports betting bonanza may have sent revenue soaring on the virtual casino side, online poker was not a beneficiary of the influx of new traffic.
In March, the state’s three poker licensees banked $1.9 million, a 3.2% decrease over the same timeframe last year.
Caesars, with its sister sites in Nevada and Delaware, is slowly eating away at PokerStars’ market share, although the industry as a whole hasn’t grown. During the month, Caesars was up 43% Y/Y, with Borgata down 22% and PokerStars dipping 21%.
The recent DOJ reversal of opinion regarding the Wire Act could make things even more difficult for U.S .online poker. The new opinion will perhaps make it even illegal for poker sites to share liquidity across states, something that is seen as an absolute necessity for the industry to survive.
March 2019 revenue totals
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