One Casino Controls Almost Half of All New Jersey Online Gambling Revenue

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According to data released by the NJ Division of Gaming Enforcement, the licensed online gambling sites run by the state’s casinos generated roughly $8.4mm in revenue during their first six weeks of operation.

The reporting covers the period from the “soft launch” of regulated online gambling in New Jersey on November 21st through the end of December.

Winners and losers in month one

The obvious winners after the first full month of legal NJ online poker and casino play: the Borgata and partner PartyPoker, who together accounted for about 45% of the total NJ online gambling revenue pie.

Operators who are likely less-than-pleased with how they performed in November and December include the Golden Nugget,who suffered numerous delays and have yet to launch a real-money poker client, and the Betfair / Trump Plaza partnership, whose online poker site generated a total of $90 – nine zero – in revenue combined for November and December.

Revenue by license holder for November and December:

  • Borgata (includes Borgata and Party online brands): $3,750,174 total; $1.9mm from poker and $1.8mm from casino.
  • Caesars (includes,, and 888 brands): $2,380,178 total; $1.2mm from poker and $1.17 from casino.
  • Trump Taj Mahal (Ultimate Poker / Casino brands): $883,037 total; $104k from poker and $778k from casino.
  • Tropicana (includes Tropicana and Virgin brands): $748,589 (casino only, poker product yet to launch).
  • Trump Plaza (Betfair brands) $427,739 total; $90 from poker and $427k from casino.
  • Golden Nugget (Golden Nugget brands)  $177,653 total (casino only, poker product yet to launch).

That’s as granular as the reporting gets. So we don’t know, for example, how much of the Borgata’s revenue from online gambling came from Borgata brands and how much came from Party.

Reading into the numbers

Of the $8.4mm total revenue, the lion’s share – $7.38mm – came in December. The remainder – just under $1mm – was generated during the 10 days in November that online gambling was available in New Jersey.

Consensus projections for the first six weeks of regulated online gambling in New Jersey hovered just around the $10mm mark.

What accounts for the gap between projections and the numbers as they actually stand? A few key factors stand out among a host of possible explanations:

  • Geolocation and deposit issues had a material impact on participation.
  • A number of operators stayed completely (Revel, Resorts) or partially (Trump Plaza, Trump Taj Mahal, Golden Nugget, Tropicana) on the sidelines of New Jersey’s regulated online gambling industry.
  • The lack of education and outreach for consumers who were clearly confused or underinformed about online gambling leading up to launch.

Casino outperformed poker in terms of total revenue:

… but that ratio could shift in coming months as more operators introduce poker products and overall poker liquidity increases. Among operators that provide both casino and poker, poker tended to outperform casino:


What to expect from the next report

The next revenue report for regulated online gambling in New Jersey will be released February 12th and cover activity in January of 2014.

So where are revenue numbers likely to head?

There’s a fair amount of ammunition for the argument that January should easily surpass December in terms of gross revenue at the state’s regulated online casinos and poker rooms:

  • Land-based operators like Caesars and the Borgata were clearly holding back on marketing efforts during the initial weeks of online gambling in New Jersey, waiting both to gauge the public temperature on the activity and to let some initial kinks work out of the system.
  • The marketing deal between PartyPoker and the Sixers / Devils should generate a material spike in interest.
  • January’s online poker performance is on pace to demolish December’s levels of activity.

Going forward, the monthly report will also contain the total number of accounts created at NJ’s online poker rooms and casinos. This will replace the previous weekly reporting regarding account creation.

- Chris is the publisher of Grove also serves as a consultant to various stakeholders in the regulated market for online gambling in the United States.
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