New Jersey’s online gambling industry continues to grow. In 2017, the combined revenue of Atlantic City’s online casinos and poker sites was $245 million. That’s a 21% increase from 2016 when New Jersey’s iGaming niche generated $195 million. Delaware added only $2.4 million in online gambling revenues, which was an 18% decline.
According to the New Jersey Division of Gaming Enforcement, land-based casinos had a revenue stream of $222.9 million in May of 2019. With all those properties still closed, that number dropped to zero this year. In contrast, online casino gambling in New Jersey had a revenue of $85.9 million in May of this year compared to $38.5 million last year. Statistics from the New Jersey Division of Gaming Enforcement (DGE) show that online casino operators reported gross gaming revenue (GGR) of $85.9 million – a 124 percent surge compared with May.
According to revenue figures released by the New Jersey Division of Gaming Enforcement (DGE), the state’s regulated online gambling market almost eclipsed its all-time monthly revenue record last month. All of the states regulated and licensed online gaming operators generated combined revenue of $38.34 million in May which is a modest $800,000-ish drop from its all-time record of $39.1 million that was generated in March. It is, however, worth noting that the May revenue figure was a stellar 57.8 percent year-on-year increase which is, by all means, a very positive development for that particular market.
Unsurprisingly, the online casino vertical was responsiblefor most of the earnings – it shot up 63.3 percent year-on-year to more than$36.5 million. Online poker, on the otherhand, dropped 6.8 percent to just $1.8 million.
In total, the state’s online gambling operators generated a total of $52.09 million in online poker, online casinos, and online sports betting gross revenue which is a 1.8 percent decline from the $53.08 million that was recorded in the previous month. Some experts have attributed the fall to last month’s positioning as one of the slowest periods in the country’s sporting calendar.
Detailed Figures From the Report
| May 2019 | April 2019 | +/- month over month | May 2018 | +/- year over year | |
| Borgata poker | $394,272 | $403,993 | -2.41% | $442,677 | -10.93% |
| Borgata casino | $5,509,496 | $5,241,265 | +5.12% | $4,138,693 | +33.12% |
| Borgata overall | $5,903,768 | $5,645,258 | +4.58% | $4,581,370 | +28.86% |
| Caesars poker | $715,168 | $741,873 | -3.60% | $770,348 | -7.16% |
| Caesars casino | $3,759,158 | $3,989,857 | -5.78% | $3,321,081 | +13.19% |
| Caesars overall | $4,474,326 | $4,731,730 | -5.44% | $4,091,429 | +9.36% |
| Golden Nugget casino | $14,078,208 | $14,316,345 | -1.66% | $8,600,364 | +63.69% |
| Hard Rock casino | $1,518,438 | $1,606,743 | -5.50% | $- | N/A |
| Ocean Resort casino | $476,435 | $318,689 | +49.50% | $- | N/A |
| Resorts poker | $688,292 | $577,710 | +19.14% | $716,668 | -3.96% |
| Resorts casino | $7,283,681 | $6,797,686 | +7.15% | $2,910,644 | +150.24% |
| Resorts overall | $7,971,973 | $7,375,396 | +8.09% | $3,627,312 | +119.78% |
| Trop casino | $3,917,490 | $3,808,203 | +2.87% | $3,402,146 | +15.15% |
| Total poker | $1,797,732 | $1,723,576 | +4.30% | $1,929,693 | -6.84% |
| Total casino | $36,542,906 | $36,078,789 | +1.29% | $22,372,928 | +63.34% |
| Total overall | $38,340,638 | $37,802,365 | +1.42% | $24,302,621 | +57.76% |
The Success of Sports Betting in New Jersey
As the state’s gaming regulators released its monthly revenue reports, one of the most notable highlights was the sports betting vertical. The state just celebrated the one-year anniversary of its legalized sports betting industry that launched following a landmark ruling by the country’s Supreme Court. The industry has surprised everyone, to say the least, and continues to do so – already a total of over $3 billion has been wagered since it kicked off.
Putting all that into consideration, it is quite obvious thatthe industry has a very bright future both in the state as well as the rest ofthe United States. With online and mobile sports betting now in the mix, it issafe to say that the sky is the limit for the state’s sports betting industry.
A year ago, many people thought that nine casinos were too many for Atlantic City. Or they were concerned that the popularity of NJ online gambling would take a hit due to the competition from other states.
Now they are eating their words. The 2019 monthly revenue reports for brick and mortar and NJ online casinos alike consistently show increases, not decreases
August was a stellar month for both Atlantic City casinos and NJ online casinos
According to the latest figures from the Division of Gaming Enforcement (DGE), total gaming revenue in the state amounted to $338.8 million. This represented an increase of 13 percent compared to the revenue for August, 2018.
Furthermore, August was the 15th consecutive month in which Atlantic City casinos showed an increase in gaming revenue.
According to James Plousis, chairman of the Casino Control Commission:
“These results show there is a great deal of customer interest in Atlantic City’s offerings, and operators have made strides adjusting in a competitive environment.”
Rummy Pandit, executive director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism at Stockton University agreed and viewed the August revenue figures as a continuation of “an overall positive trend for Atlantic City.”
Pandit further commented:
“Overall, Atlantic City continues to demonstrate strong gaming revenues compared to 2018, indicating a consistent growth within its market segments and further strengthening its position as a premier destination resort on the East Coast.”
In fact, business was jumping at Atlantic City casinos all summer long
Largely due to the launch of NJ legalized sports bettingon June 14, the summer of 2019 proved to be a strong follow-up to another very good season for Atlantic City the previous year. “One of the best summers in recent years for Atlantic City” according to Steve Callender, senior vice president of operations for the East Region of Eldorado Resorts, Inc. the parent company of Tropicana Atlantic City and president of the Casino Association of New Jersey.
As Callender pointed out:
“Casinos saw strong employment, visitation, and gaming revenue. Two great back-to-back summer seasons continue to demonstrate that the casino industry’s ongoing investment in Atlantic City’s transformation into a first-class resort and business conference destination has staying power.”
Eight of the nine Atlantic City-based casinos reported increased total gaming revenue in August
Total gaming revenue includes the amount a casino has taken in over a certain period of time from slots, table games, internet gaming, and sports betting combined. With the one exception of Harrah’s Resort, which registered a slight decline (0.9%) in August, total gaming revenue for August increased at each Atlantic City casino.
Borgata reported its best August and best summer ever
Borgata Hotel Casino & Spa led the way, generating nearly $80 million in total gaming revenue during the month of August alone. A spokesman for the casino called the summer of 2019 the best in the entire 16-year history of the property.
Marcus Glover, president and COO of the property, stated that Borgata was “looking forward to continuing the momentum in the fall.”
“We are thrilled with the record-breaking success Borgata has experienced throughout the summer. Bolstered y significant capital expenditure, strategic gaming promotions, and unparalleled guest service displayed by our team members, Borgata enjoyed its highest three-month stretch of gross gaming revenue in the property’s 16-year history.”
But not about to rest on its laurels, only two months after unveiling the Moneyline Barand Book, its new sports betting facility adjacent to the Borgata Race & Sports Book, Borgata announced a brand new $14 million renovation. This one will involve the hotel lobby and 312 suites. The lobby makeover will include a VIP check-in area, bar serving cocktails and tapas, coffee service, three large-screen TVs, and on weekends, a piano bar.
August, 2019 was the best month for Ocean Casino Resort, too
Ocean Casino Resort, which had been struggling during its first months of existence, seems to have found new life since Luxor Capital took over ownership of the property early this year. According to Ocean’s chief marketing officer and senior vice president Mike Donovan:
“August was the best performing month in the property’s history; highest gross gaming revenue, slot revenue, hotel revenue and nongaming revenues. We continue to see strong volumes, highlighted by a 42% increase in our slot business over the prior year.”
Gross gaming revenue for 2019 thus far (January – August) at the resort amounts to $2.18 billion, representing a 17.6 percent increase from 2018.
August, 2019 was also a record month for NJ online casinos
The August revenue figures for NJ online casinos are as impressive as those reported by the Atlantic City casinos. Total online gaming revenue for the month totaled a whopping $41.1 million. This was the first time in the entire history of NJ online casino gambling since its November 26, 2013 inception that revenue topped the $40 million mark.
As usual, Golden Nugget and its online affiliates led the way, generating just short of $15 million in revenue, an increase of 84 percent compared to August, 2018.
Sports betting was a big contributor
Legalized sports bettingaccounted for $11.26 million, or 27 percent of the $41.1 million total and a 115 percent increase over August, 2018.
DraftKings, a NJ online casino partner with Resorts Casino Hotel, generated nearly $6.7 million in sports betting revenue in August.
Sports betting will make September an even bigger month for NJ online casinos
According to Dustin Gouker, lead sports betting analyst for PlayNJ.com:
May Nj Online Casino Revenues
“New Jersey has successfully managed to shrug off competition and continue to grow and at a faster rate than initially expected.
With new operators launching in September and the NFL season in full swing, New Jersey’s upward trajectory should continue, even as neighboring Pennsylvania expands online sports betting.”
May Nj Online Casino Revenue Codes
Steve Ruddock, content director at BettingUSA.com, concurs and calls the addition of sports betting a “boon” for NJ online casinos and a major reason for the recent upsurge in revenue.
Online Gambling Revenue
“Revenue has surged to unprecedented levels over the last year, and that growth can be directly linked to can be directly linked to online sports betting.”