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.
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:
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.
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:
Casino outperformed poker in terms of total revenue:
Digging a bit deeper – poker GGR $3.2m (38%), other authorized games $5.17m (62%).
— Dave Behr (@dave_behr) January 14, 2014
… 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:
Average % of revenue from online poker for NJ sites that offer it. Party: 50.8%. CIE: 50.6%. Ultimate: 11.8%. Betfair: .0002%.
— Marco Valerio (@AgentMarco) January 14, 2014
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:
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.