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 January 2018

January was an unprecedented month for the industry, one in which several revenue records fell. After a solid but run-of-the-mill December, industry revenue soared 5.8% month-on-month, and overall revenue was higher than it’s ever been in the market’s four-plus year history.

Big picture

LicenseeOnline Casino Rev.Online Poker Rev.Total Rev.
Borgata AC$3,526,844$626,689$4,153,533
Caesars AC$2,845,068$507,048$3,352,116
Golden Nugget AC$7,299,815
N/A$7,299,815
Resorts AC$3,070,386$816,959$3,887,345
Tropicana AC$3,269,530N/A$3,269,530
Totals$20,011,643$1,950,696$21,962,339

Last month, the industry generated a total of $21,962,339, representing a stellar 16.7% year-on-year uptick. That figure is a new high-water mark for the industry, eclipsing the previous record set in March 2017 by a scant $217k.

Online casino operators led the charge once again with $20,011,643, up 21.4% year-on-year, and accounting for an outrageous 91.1% of industry revenue. Casino revenue was up 6.3% month-on-month, with at least a portion of the gains accounted for by an unseasonably cold stretch in early January.

Online poker revenue ($1,950,696) was effectively flat (+0.7%) despite a strong performance from PokerStars, which saw its monthly revenue increase by 5.3% to $817k. However, any gains by PokerStars were effectively offset by the struggling WSOP NJ/888 Poker NJ network, which saw revenue dip to a measly $507k. Revenue for online poker was down sharply (-16.6%) year-on-year.

While January’s figures are certainly cause for celebration, most operators saw their revenue remain mostly flat since December, with only Resorts and Golden Nugget seeing material upticks. However, Golden Nugget’s growth was so pronounced, that it almost single-handedly carried the industry to new heights.

Market share

January was a titanic month for Golden Nugget AC, whose three operators (Golden Nugget Casino, Betfair Casino, and Play SugarHouse) combined to generate an industry best $7,299,815. Not only was it Golden Nugget’s best month ever, but it crushed its own record for a single operator by more than $1 million.

Part of the operator’s success is no doubt tied to its aggressiveness on the promotional front. Both Golden Nugget and Play SugarHouse held powerhouse promos in January which saw players win tens-of-thousands in bonus cash. In January, the Golden Nugget triumvirate saw $1,075,219 wagered on promotional plays, far more than any other operator.

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 $3.15 million, despite the latter supporting an online poker network.

Golden Nugget has been atop the industry leaderboards for 20 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 six months. Borgata revenue was down a smidge in January, to $3.53 million.

Resorts casino revenue experienced a big uptick in January, up 26.6% month-on-month to $3.07 million. Tropicana revenue was down modestly, which Caesars took a moderate hit, down 13% for the month, and relatively flat y/y.

At 33.2% market share, Golden Nugget AC holds a double digit lead over all of its competitors. It’s total market share was up a blistering 3% plus for the month.

All-time NJ online gambling revenue

The NJ online gambling industry has now generated over $731.1 million in gross gaming revenue since flipping over the open sign nearly four years ago, with over $248.7 million of that total coming in the past 12 months 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

2018$20,011,643$1,950,696$21,962,339$3,843,409

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 $130.3 million to NJ state coffers, with more than $43.5 million coming in the past 12 months.

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.

However, with the rate Golden Nugget is going, we now project that it will surpass Borgata as the lifetime market share leader by the time 2018 comes to a close. Already, the giant has caught Tropicana, and surpassed Caesars in November. This changing of the guard is highly significant, as its lends credence to the idea that smaller land-based brands can beat out industry giants in the online space. It’s at least something smaller casinos in other states will want to consider as they ramp up their iGaming lobbying efforts.

NJ online gambling industry outlook

The NJ online gambling industry staved off reaching maturity for another month, and there’s signs that it could continue to do so throughout 2018. Growth will be slower, undoubtedly, but 2018 will see a few interesting developments that could push annual revenue up moderately, perhaps as much as 10-15%.

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