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 November 2017
November was the ninth consecutive month that the industry grossed over $20 million. That being said, the market’s days of wild growth do appear to be coming to an end, with month-on-month revenue up just 0.2%, and overall revenue down $1.14 million from March’s record breaking performance.
|Licensee||Online Casino Rev.||Online Poker Rev.||Total Rev.|
|Golden Nugget AC||$6,193,991||N/A||$6,138,184|
Last month, the industry generated a total of $20,610,216, representing a solid 20.0% year-on-year uptick. Of the months with 30-days or less, November was second best.
Online casino operators led the way once again with $18,800,417, up 24.6% year-on-year, and accounting for an outrageous 91.2% of industry revenue. Normalized for November’s shorter length, casino revenue was up 5.1%.
PokerStars and Borgata, which each run high-profile tournament series’ of their own back in October, each took precipitous downturns. Revenue for online poker was down 6.4% month-on-month, but down sharply (-13.1%) year-on-year.
Since March, revenue hasn’t varied by more than $1.35 million, firmly suggesting that NJ online gambling is finally entering a stabilization period.
No surprise here: November 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 $6,193,991. It was the operator’s second highest tally ever, coming up just $56k short of July’s record breaker.
What’s remarkable about the Golden Nugget’s performance, is not so much that it’s winning, but the margin of victory. The operator blew away it’s closest competitor (Borgata AC) by nearly $2 million, despite the latter supporting an online poker network.
Golden Nugget has been atop the industry leaderboards for 18 consecutive months now, and we can’t envision a scenario where it gets usurped anytime soon. Its revenue was up $56k month-on-month, and over $1 million compared to August. It is plausible that Golden Nugget will break the record for most revenue in a month by a single operator in December.
Tropicana revenue experienced a modest decline in November, while casino revenue for all other operators up slightly.
At 30.1% market share, Golden Nugget AC holds a double digit lead over three of its competitors, and a 9.4% lead over second place Borgata. Its total market share continues to climb, up 0.3% month-on-month.
All-time NJ online gambling revenue
The NJ online gambling industry has now generated over $725 million in gross gaming revenue since flipping over the open sign nearly four years ago, with just under $225 million of that total coming in 2017 alone.
|Year||Online Casino Rev.||Online Poker Rev.||Total Revenue||Taxes Paid|
Remarkably, the industry has generated far more revenue through the first eleven months of 2017, than in all of 2016. Also noteworthy, online casino revenue has passed the $200 million mark for the first time in any calendar year.
Our internal projections show that NJ online gambling operators are expected to win a total of $248.3 million in 2017, accounting for a 26.2% uptick over last year’s mark. Online casino alone will generate more revenue ($224 million) than the entire industry did in 2016, by more than $27 million.
Operators have now paid nearly $122.8 million to NJ state coffers, with over $39.3 million of that total coming this year.
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, just this month, surpassed Caesars.
The entry of playMGM in August was supposed to ensure that Borgata retains its position for longer, but it hasn’t yet made a material impact on Borgata revenue.
NJ online gambling industry outlook
Historically, December has nearly always been the strongest month for the industry, due to the influx of holiday promotions offered by operators. Midway through the month, and the offers are already in full swing, with several operators hosting six-figure giveaways.
Even poker sites are getting involved, with PokerStars NJ a month-long Christmas Celebration promo, and other sites hosting smaller events. However, we’re not convinced that these offers will have any more impact than last month’s anniversary events did. More likely, online poker will rebound slightly in January through March, when the cold and lack of holidays drives players to the tables.
In reality, we might not see online poker revenue budge significantly until the interstate liquidity sharing compact with Nevada and Delaware (and possibly Pennsylvania) goes live.
Will December be the month the industry finally breaks a new monthly record — a feat it accomplished with regularity in 2016 and early 2017? We think so, yes. And it also wouldn’t surprise if we saw the first $20 million month from online casino sites.