New Jersey online gambling market sets annual revenue record
16 Nov 2017
"Topping 2016's revenue tally two months before the end of the year is the clearest signal yet that demand for the legal online gambling industry's products has not yet peaked," said PlayNJ lead analyst Steve Ruddock.
The state's regulated online casinos combined to generate $20.6 million in October, according to the New Jersey Monthly Internet Gross Revenue Report, released Wednesday by the state's Division of Gaming Enforcement.
October marked the eighth consecutive month that the state's regulated online casinos have collected more than $20 million in combined revenue from online poker and casino games. The October total is up from the $20.4 million generated in September and up 23% from $16.7 million in October 2016.
More impressively, New Jersey's online casinos have now generated $204.2 million in gross revenue for 2017 through 31 October, crossing the $200 million milestone for the first time and leaping past the $196.7 million record for annual revenue that the industry set in 2016. New Jersey is on pace to generate nearly a quarter of a billion dollars in gross revenue from legal online gambling by year's end.
Since New Jersey legalized and regulated online gambling in November 2013, the Garden State's online casinos have collected $682.6 million in lifetime gross revenue. That has poured $119.4 million in tax revenue into state coffers.
The future of the industry brightened even more this month after Pennsylvania became the fourth state to legalize and regulate online gambling, joining New Jersey, Delaware and Nevada.
"After Pennsylvania's online casinos go live, a total of 26 million U.S. residents will have access to legal, regulated online gaming sites," Ruddock said. "That rising tide will positively affect every state where online gambling is legal."
New Jersey, Delaware, and Nevada have already reached an agreement to share player pools for online poker and casino games, and now Pennsylvania could join that growing network. That would be a particular boon for online poker, vastly growing the pool of games available to players in participating states.
"The interstate compact between Nevada, Delaware and New Jersey will serve to stabilize and grow the online poker market in all three states," Ruddock said. "Throw Pennsylvania into the mix, and the U.S. online poker market is poised to double in size by the end of 2018."
Some other key points from the October report:
-New Jersey online casinos collected $3.6 million in tax revenue in October.
-Online casinos generated $663,471 per day during the 31 days in October compared with $679,726 per day during the 30 days in September.
-In 2017, New Jersey's online casinos have averaged $20.4 million per month in gross revenue.
-Golden Nugget - Atlantic City, home to the Golden Nugget Casino, Betfair Casino and SugarHouse Online Casino brands, amassed $6.1 million in gross revenue to lead all licensees in October.
-Borgata Hotel Casino and Spa, home to the Borgata Online Casino, playMGM Casino, partypoker New Jersey and Pala online brands, generated $4.2 million in October. Borgata remains the leader in total gambling win at $180.7 million.
For more information and analysis on regulated online gaming in New Jersey, visit PlayNJ.