NJ online casinos surpass $20 million in revenue for sixth consecutive month
13 Sep 2017
The state's regulated online casinos combined to generate $21.3 million in August, according to the New Jersey Monthly Internet Gross Revenue Report, which was released Wednesday by the state's Division of Gaming Enforcement. The August total is the highest since March, up from the $20.6 million generated in July and up 32% from $16.1 million in August 2016. Online casinos generated $709,296 per day during the 30 days in August, compared with $664,049 per day during the 31 days in July.
"Early revenue projections may have missed the mark, but analysts were right on the money with their predictions that New Jersey online gaming would see sustained growth as the market matured," said Steve Ruddock, lead analyst for PlayNJ.
Since online gambling was legalized and regulated in November 2013, online casinos have generated $640.6 million in gross revenue and $111.8 million in tax revenue. And the state's legal online gambling industry is poised to post significant gains in the coming months.
"Online gaming has grown into an industry on pace to generate close to a quarter of a billion dollars in 2017," Ruddock said. "That represents a 20% year-over-year increase and an increase of more than 90% compared with what the industry generated back in its first full year in 2014."
August's revenue was aided by the emergence of MGM Resorts International's playMGM brand. The new New Jersey brand may have some company in the coming months, with TEN AC and Hard Rock Atlantic City on observers' lists of brands likely to enter New Jersey's burgeoning online casino market.
"The arrival of MGM demonstrates that major players believe there is still plenty of meat on the bone in the New Jersey market," Ruddock said. "We anticipate Ten and Hard Rock will follow suit and launch online gaming sites to strengthen their land-based casino revenue, brand awareness, and marketing initiatives.
"MGM's entry could also point to renewed support from the company to expand regulated online gambling in other states."
Some other key points from the August report:
-New Jersey online casinos collected $3.7 million in tax revenue in August.
-Golden Nugget - Atlantic City, home to the Golden Nugget Casino, Betfair Casino and SugarHouse Online Casino brands, pulled in $5.2 million in gross revenue to lead all licensees in August. By doing so, The Golden Nugget surpassed Caesars Interactive Entertainment, which includes the CaesarsCasino.com, HarrahsCasino.com and 888 Casino New Jersey brands, as No. 2 on the lifetime revenue list with $136.3 million.
-Borgata Hotel Casino and Spa, home to the Borgata Online Poker, partypoker New Jersey and Pala Casino online brands, generated $4.3 million in August. An early adopter of legal online gambling, Borgata remains the leader in total gambling win at $172.3 million.
-Tropicana Atlantic City Casino & Resort, which includes the Tropicana Atlantic City Online and Virgin Casino brands, surpassed $120 million in lifetime revenue.
For more information and analysis on regulated online gaming in New Jersey, visit PlayNJ.