New Jersey's online gambling industry shatters more records
14 Mar 2018
"This will not be the last record-setting month this year," said PlayNJ lead analyst Steve Ruddock. "New and expanded product lines, improved payment processing, and advancements in customer service will continue to drive organic growth. And the market is expected to expand when Ocean Resort Casino and Hard Rock Atlantic City launch online casinos in the coming months."
New Jersey online casinos amassed $21.99 million in gross revenue, according to New Jersey's February Internet Gross Revenue Report, released Wednesday. That is up 0.1% from the $21.96 million benchmark set in January and up 17.5% from $18.7 million in February 2017.
Most impressively, New Jersey's online casinos were able to set the monthly record during the year's shortest month. The industry generated $785,433 per day in the 28 days of February, obliterating the former record of $708,463 per day set just last month.
"After growth slowed at the tailend of 2017, only the most optimistic projections could have predicted the start to this year for the online gambling industry," Ruddock said. "If February's per-day haul is indicative of the coming year, we could see a $24 million month as early as March."
Much of the revenue growth can be attributed to growth at the Golden Nugget — home to the Golden Nugget, Betfair, and SugarHouse online casino brands. A month after setting a new standard for the single largest monthly haul by a New Jersey online casino since online gambling was legalized and regulated in 2013 with $7.3 million, the Golden Nugget raised revenues 8% to $7.9 million.
The Golden Nugget's next closest competitor is Borgata Hotel Casino & Spa — home to the Borgata Online Casino, playMGM Casino, partypoker New Jersey, and Pala Casino online brands — which posted $3.8 million in February revenue.
"Golden Nugget is no longer simply a front-runner in the New Jersey online market, it's now lapping the field," Ruddock said. "It will be interesting to see if other New Jersey online casinos try to replicate the Golden Nugget’s strategies, which are clearly working."
Some other key points from the February report:
- February brought New Jersey's legal online gambling industry to $766.4 million in combined lifetime revenue. The current pace of the industry's growth keeps the $1 billion mark within reach by the end of 2018.
- After February's haul, Borgata has now generated $197.2 million in total gambling win. In March, Borgata will likely become the first operator to reach $200 million in lifetime revenue.
- New Jersey online casinos paid $3.85 million in taxes to the state in February. Since New Jersey legalized and regulated online gambling, the Garden State's online casinos have generated $134.3 million in tax revenue for the state.
- Online casino games generated $20.3 million in February, up 1% from $20.01 million in January.
- Online poker brought in $1.8 million in February, down from $1.95 million in January.