NJ Online Gambling Revenue

There is perhaps no better indicator of the NJ online gambling industry’s trajectory than the revenue figures that are released monthly by the NJ Division of Gaming Enforcement.

We have compiled those figures dating back to the industry’s infancy, and present them on this page, along with supplementary commentary that details recent and historical performances.

NJ online gambling revenue for September 2017

September was a solid, yet unremarkable month for the industry, its second worst since February, yet only $1.35 mm off March’s record breaking performance.

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LicenseeOnline Casino Rev.Online Poker Rev.Total Rev.
Borgata AC$3,607,484$632,568$4,240,052
Caesars AC$2,860,880$561,705$3,422,585
Golden Nugget AC$5,710,919
N/A$5,710,919
Resorts AC$2,881,946$707,976$3,589,922
Tropicana AC$3,428,304N/A$3,428,304
Totals$18,489,533$1,902,249$20,391,782

Last month, the industry generated a total of $20,391,782, representing an impressive 25.6% year-on-year uptick. However, month-on-month revenue was down 4.2%, which is partially a byproduct of September’s shorter length.

Online casino operators led the way with $18,489,533, up 30.1% year-on-year, and accounting for an outrageous 90.7% of industry revenue. Online poker revenue ($1,902,249) was down in the dumps, falling 5.7% compared to last September, and down 8.6% from August.

September marked the seventh consecutive month industry revenue surpassed $20 million — a mark it hadn’t ever surpassed before March 2017.

Market share

September was yet another big month for Golden Nugget AC, whose three operators (Golden Nugget Casino, Betfair Casino, and Play SugarHouse) combined to generate an industry best $5,710,919.

What’s remarkable about the Golden Nugget is that it’s been the most successful NJ online gambling operation for 16 consecutive months, despite not supporting the online poker vertical.

And unlike last month, where Golden Nugget merely edged out competitors Tropicana, Borgata, Resorts and Caesars, in September the operator blew them out of the water, beating out its closest rival by nearly $1.5 mm.

Golden Nugget revenue was up $520k in September, despite awarding several more top prizes for its Divine Fortune jackpot slot.

At 28.0% market share, Golden Nugget AC holds a double digit lead over three of its competitors, and a 7.2% lead over second place Borgata — which does support online poker sites.

All-time NJ online gambling revenue

The NJ online gambling industry has now generated over $647 million in gross gaming revenue since flipping over the open sign nearly four years ago, with more than a quarter of that ($183.7 million) coming in 2017 alone.

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YearOnline Casino Rev.Online Poker Rev.Total RevenueTaxes Paid
2013$5,157,180$3,211,657$8,368,837$1,464,546
2014$93,812,655
$29,064,097
$122,876,752
$21,503,432
2015$125,063,408
$23,816,772
$148,880,180
$26,054,032
2016$170,197,707
$26,511,723
$196,709,430
$34,424,150
2017$165,092,039
$18,578,456
$183,670,495
$32,142,337

Remarkably, the industry has generated more revenue through the first nine months of 2017, than in all of 2015, and barring a collapse, will break last year’s record setting mark prior to Halloween.

Our internal projections show that NJ online gambling operators are expected to win a total of $250.5 million in 2017, accounting for a 27.3% uptick over last year’s mark. Online casino alone will generate more revenue ($225.7 million) than the entire industry did in 2016, by nearly $30 million.

Operators have now paid over $115 million to NJ state coffers, with over $32.1 million of that total coming this year.

Market share

The all-time market share lead still belongs to Borgata AC, which dominated the industry revenue charts in the market’s early years.

Although we don’t expect anyone to surpass the Borgata in total industry revenue anytime soon, it seems nearly inevitable that Golden Nugget AC will one day emerge as the unequivocal industry powerhouse. Already, the giant has caught Tropicana, and is hot on Caesars’ trail.

The entry of playMGM in August should ensure that Borgata retains its position for longer, but it remains to be seen just how impactful MGM’s casino and poker operations will be on Borgata AC’s bottom line. So far the result has been unremarkable.

NJ online gambling industry outlook

October should see NJ online poker rebound, as both the PokerStars NJCOOP and Borgata GSSS Fall Edition will likely draw significant tournament traffic. Last October, when the inaugural NJCOOP ran, NJ online poker generated nearly $2.4 million, and we expect a similar result this year.

It’s worth noting that while October is a 31-day month, historically, the NJ online casino industry hasn’t performed all that much better in October than in September. Last year, revenue was up just 0.4% from September to October.

Thus, we don’t necessarily expect the industry to set a new record this month, despite the strong performance of online poker. More plausible, is that the industry breaks new ground in either November and December, which have always proven strong months for the market.