Is $100M In Monthly NJ Online Casino Revenue Here To Stay?

DGE figures for May included a third straight $100M+ month, along with steady sports betting handle
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Atlantic City casino operators, as has been expected, are enjoying monthly increases in gross gaming revenue as a more vaccinated and more confident collection of residents venture forth to the city to gamble.

February’s statewide gaming revenue of $148.2 million was followed by March’s $184.9 million, April’s $189.6 million, and — per figures released on Wednesday by the state Division of Gaming Enforcement — $213.1 million in May.

A key question has been whether industry-best online casino gaming numbers would be impacted negatively by the visits, as consumers increasingly had that more traditional option.

But that hasn’t happened — nor have state regulators expected it to happen, as DGE Director David Rebuck has insisted for years that “there is no cannibalization.”

Sure enough, online casino revenue hardly has wavered: $93.8 million in February, a record $113.7 million in March, $107.7 million in April, and last month $108.2 million.

With December 2020 having been the first month at the $100 million milestone, it now seems quite possible that the industry — born in November 2013 and followed by a slow, steady, annual increase — is settling at that number in maturity.

Sports betting handle also steady

While sports betting — 90.2% of which was done online in May, with the rest being bet at AC casinos and the state’s three racetracks — has a seasonal component to it, the wagering handle has not fluctuated that wildly in 2021.

The $814.3 million legally bet in the state in May compares to $748 million in April, $859.6 during March and its Madness, $743 million in a 28-day, mostly football-free February, and $958.7 million in January.

The professional sports bettor known as Captain Jack Andrews sets a line (for amusement purposes only) each month on NJ betting handle. For May, it was over $785 million or under $755 million, and with the majority predicting under, the industry modestly exceeded expectations.

Nearly $1 billion of the $4.1 billion in completed wagers for 2021 in total came from multi-bet parlay wagering, and the books have kept a savory 17.6% of those dollars.

Gamblers have done far better on basketball, losing a scant 3.2% of their money collectively. That beats baseball (5%) as well as football (5.6%) and all other sports combined (4.8%).

The Meadowlands Racetrack and its FanDuel and PointsBet partners dominated May sports betting figures even more than usual, snagging $34.6 million of the $52.9 million in revenue for the industry.

One area that has not fared as well is online poker, where revenue dropped from $4.5 million in May 2020 — in the midst of the pandemic, when gamblers flocked to online competition — to $2.4 million last month. The latter figure is only slightly higher than what was typically seen in a month in New Jersey pre-pandemic.

Image by Shutterstock

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