Take That 2014! NJ Online Casino Revenues Up 30% From Last Year

NJ online casinos revenue June

On Tuesday the New Jersey Division of Gaming Enforcement released its monthly revenue reports for the state’s online gambling operators.

The results for the month of June were either really good or somewhat bad, depending on your point of view.

For the pessimistically inclined, New Jersey online gaming revenue dipped from $12.4 million in May of 2015 to $11.6 million in June of 2015. However, for the optimists among us, the roughly 6% month-over-month decline was more than offset by a robust 23% year-over-year increase.

Further, the MoM declines were anticipated, as online play has historically dipped during the summer months. Conversely, the YoY increase points to the market’s continued and sustained growth in 2015.

Let’s take a deeper look inside the numbers.

Has NJ online poker hit its floor?

After peaking early in 2014, online poker revenue steadily declined in New Jersey, but it now appears to have hit its floor. Since May 2014, online poker revenue in New Jersey has fluctuated between $1.85 million and $2.3 million, with most months right around $2 million.

If iPoker revenue has indeed reached bottom – and New Jersey online casinos continue to grow – it should bode well for the market.

The expected imminent launch of PokerStars could also buoy the online poker numbers moving forward, and perhaps push iPoker revenue numbers away from the floor and towards the market’s ceiling.

How did the individual operators do?

iGaming revenue in June 2015 by operator:

Borgata holds steady

Borgata had a tough month, as the company saw its online casino and poker revenue drop by nearly double digits, 9% and 13% respectively.

However, Borgata managed to maintain its lead in total online gaming revenue, and was the highest grossing online casino for the first time in several months, although just barely:

  • Borgata iCasino revenue: $2,595,670
  • Golden Nugget iCasino revenue: $2,525,016
  • Tropicana online casino revenue: $2,561,391

Golden Nugget takes a hit

Golden Nugget saw its online casino revenue dip to $2.5 million in June, just two months after posting a record $3.3 million in iCasino revenue in April.

This is pure speculation, but the pronounced drop may indicate a fairly substantial jackpot was hit in June.

Tropicana

Tropicana managed to increase revenue month-over-month, but it should be noted that last month’s tally included a $400k slot payout.

Resorts continues to climb

Resorts continues to impress in the New Jersey iGaming market, and its performance may be putting the final nail in the coffin of the first mover advantage.

It also appears that any legal online casino site that launches in New Jersey is going to gain a decent market share, as not a single online casino hasn’t been able to tally monthly revenue in the mid six-figures.

  1. February: $50,909
  2. March: $154,071
  3. April: $212,739
  4. May: $324,662
  5. June: $400,600

Caesars bringing up the rear

Caesars managed to stop the bleeding in June. iCasino revenue held relatively steady MoM.

Caesars’ online poker sites bucked the seasonal trend and posted a 6% MoM increase. This increase likely stems from the World Series of Poker online satellites the site ran throughout June.

Solid YoY gains for the market

Through the first six months of 2015 the New Jersey iGaming market has easily eclipsed its monthly revenue totals from 2014 each and every month.

It also appears that the YoY increases are growing as 2015 progresses. Following three months of sustained growth in the 9% to 10% range, the market has posted consecutive months of 19% and 23% growth, respectively.

So, even though total revenue has been on the decline over the past three months, this is a bit of a red herring, considering YoY growth has been the most pronounced in two of these three months, May and June.

Percentage YoY change:

  • January +18%
  • February +9%
  • March +10%
  • April +10%
  • May +19%
  • June +23%

rev july 1

What this indicates is that New Jersey’s online gaming operators are experiencing the historical seasonal lull in a still-maturing market.

Historical look at NJ online gambling revenue

rev july 2

*Red data points indicate adjustments for 7-figure jackpots paid out in that month (a $1.3 million slot jackpot in June 2014 and a $1.5 million table game jackpot in February 2015).

Be sure to check our New Jersey iGaming revenue page for a detailed breakdown of online gambling revenue in the Garden State.

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Steve Ruddock

About

Steve covers nearly every angle of online poker in his job as a full-time freelance poker writer. His primary focus is the developing legal and legislative picture for regulated US online poker and gambling.