Borgata’s online gambling operations are officially in the black less than a year after launch in New Jersey.
That’s per Boyd Gaming President and CEO Keith Smith during a recent earnings call covering Q3 2014.
“Borgata’s online gaming business was profitable throughout the third quarter,” noted Smith, adding that “we expect to see further improvement in the fourth quarter as online business should pick up during the colder winter months.”
Smith’s update put the company ahead of the expectations Boyd set for online gambling last quarter, when Smith told analysts that he expected online gambling to “continue to operate on a breakeven basis in the third and fourth quarters.”
Helping Borgata on the path to profitability: the site’s market-leading position in both the poker and casino categories.
On the casino side, Borgata and Party have accounted for nearly a third of all online casino revenue generated in New Jersey in 2014.
While PokerStars would likely pose little threat to Borgata’s casino dominance, there’s a good chance that PokerStars will draw some poker traffic away from Borgata / Party (although you could also make the argument that Stars will expand the market for all).
Smith addressed the PokerStars issue in response to a question from Thomas Allen of Morgan Stanley:
With respect to Poker Stars, once again we don’t have any insight or any knowledge. As we built the model to operate online gaming in New Jersey, we just assumed they would be involved at some point in time. So that’s the ultimate decision by the New Jersey regulators, then that’s it. We’ll be prepared to deal with it.