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 December 2017

December was the tenth 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 0.1%, and overall revenue down $988k from March’s record breaking performance.

Big picture

LicenseeOnline Casino Rev.Online Poker Rev.Total Rev.
Borgata AC$3,675,415 $630,823$4,306,238
Caesars AC$3,270,633$530,037$3,800,670
Golden Nugget AC$6,086,534
N/A$6,086,534
Resorts AC$2,424,802$776,201$3,201,003
Tropicana AC$3,363,200 N/A$3,363,200
Totals$18,820,584$1,937,061$20,757,645

Last month, the industry generated a total of $20,757,645, representing a lukewarm 12.9% year-on-year uptick. It was the smallest percentage gains of any month last year. In terms of overall performance, December was the fifth-best month of 2017.

Online casino operators led the way once again with $18,820,584, up 15.6% year-on-year, and accounting for an outrageous 90.7% of industry revenue. Normalized for December’s longer length, casino revenue was down 3.1% for the month, which comes as something of a surprise, as December is generally high time for the industry.

Online poker revenue ($1,937,061) rebounded somewhat, partially due to seasonal winds and an influx of promotions on PokerStars. PokerStars M/M revenue was up a worthy 11.8%.

At 9.4% monthly growth, Borgata exhibited similar gains. WSOP NJ/888 Poker NJ revenue held mostly steady.

Revenue for online poker was up 7% month-on-month, but still down fairly sharply (-7.8%) year-on-year.

Since March, total industry revenue hasn’t varied by more than $1.35 million, firmly suggesting that NJ online gambling has entered a stabilization period.

Market share

No surprise here: December 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 $6,086,534. It was the operator’s third consecutive $6 million month, and fifth overall.

Still, it’s hard not to be slightly disappointed, as with all the holiday promotional fun going on, the network came up over $160k 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 $1.8 million, despite the latter supporting an online poker network.

Golden Nugget has been atop the industry leaderboards for 19 consecutive months now, and we can’t envision a scenario where it gets usurped anytime soon. That’s not to say other operators aren’t putting up a fight, however. Borgata in particular has shown signs of life lately, with casino revenue eclipsing $3.5 million in each of the past five months. Borgata revenue held mostly steady in December, at $3.68 million.

Resorts revenue experienced a modest decline in November, while casino revenue for Caesars and Tropicana was up moderately.

At 29.3% market share, Golden Nugget AC holds a double digit lead over three of its competitors, and a 8.6% lead over second place Borgata. However, its total market share was down 0.8% month-on-month.

All-time NJ online gambling revenue

The NJ online gambling industry has now generated nearly $725 million in gross gaming revenue since flipping over the open sign nearly four years ago, with over under $245 million of that total coming in 2017 alone.

Big picture

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$221,346,520$24,259,461$245,605,981$42,981,047

The exact figure for 2017 was $245,605,981, representing an uptick of 24.9% over 2016. Online casino revenue accounted for $221.3 of that total, and was up a blistering 30.1% for the year. The biggest year-over-year gains came in the first ten months of the year, with more tempered gains in November and December.

Operators have now paid nearly $126.4 million to NJ state coffers, with nearly $43 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 surpassed Caesars in November

The entry of playMGM in August will likely ensure that Borgata maintains its market share lead for longer, perhaps even for all of 2018, but it hasn’t had an overwhelming impact on network revenue.

NJ online gambling industry outlook

2017 will likely go down as the year the NJ online gambling industry reached maturation, as signs point toward industry stabilization. However, this year could see a few interesting developments that pushes annual revenue up modestly, and in a bull case, perhaps as much as 10-15%.

  • The opening of Hard Rock Casino, slated for Memorial Day, will almost undoubtedly be paired with the launch of an online casino.
  • The former Revel is scheduled to reopen sometime this summer. The rebranded Ocean Casino will be looking to increase its presence early, and an online gambling site is one way it can accomplish this.
  • By the second half of the year, New Jersey will have likely combined its online poker player pools with Nevada/Delaware and possibly Pennsylvania.
  • Mobile casino apps will continue to improve, and operators will grow even more in tune with their patrons’ wish lists.

In any case, the recent performance of the market should finally put to rest any doubts over its viability.