Online casinos increase daily average revenue 1.6% while poker rooms take a slight dip.

New Jersey Online Casinos And Poker Rooms Earn $92 Million In November, Hanging On To October Gains

New Jersey’s online gambling industry held a steady course in November. Revenue was either down or up slightly depending on how you calculate it, but very close to even either way.

NJ gambling sites combined to bring in $91.8 million for the month of November. That’s a bit of a drop from October’s total of $93.5 million, so the state didn’t set a new monthly record. On the other hand, November is one day shorter than October. Taking that into account, daily revenue was actually up about 1.5%, from an average of $3.01 million to $3.06 million.

On the surface, such a small amount of growth might seem disappointing. Yet it represents a consolidation of more substantial gains in October. From May through September, the revenue total had hovered between $85 million and $88 million. Thus, it’s a positive sign for the industry that we saw continued growth rather than a reversion to those earlier numbers.

The bad news is that sports betting and retail casino revenue both moved in the opposite direction. As a result, total gaming revenue for November was down to just under $289 million, compared to $338 million in October. Although Atlantic City casinos remain open, they face very tight restrictions, and the continued surge in cases of COVID-19 is likely leading customers to stay home.

Data comes from the latest report published by the NJ Division of Gaming Enforcement.

NJ online gambling highlights: November 2020

Here’s the dollar breakdown for NJ online gambling in November:

  • Combined revenue for online casinos and poker in November amounted to $91,827,190, down from $93,451,523.
  • Daily average revenue increased slightly, to $3,060,906, setting a new record.
  • Online casinos likewise saw monthly total revenue fall, to $89,430,573, but daily average revenue increase slightly, to $2,981,019.
  • Online poker rooms continued to slow down, even taking the shorter month into account. They pulled in $2,396,617 compared to $2,517,774 in October.

This marks four straight months of decline for New Jersey online poker revenue. At first, that was simply a correction after the WSOP Online Bracelet Series inflated traffic over the summer. Now, it likely reflects waning interest after online poker’s brief return to popularity during this spring’s lockdown.

For online casinos, on the other hand, the initial boost wasn’t quite as large, but has proven more lasting. In New Jersey and elsewhere, there’s no indication that traffic and revenue will go back to pre-COVID levels, at least not until the pandemic is truly over.

One developing story over the last few months has been Borgata‘s effort to overtake Golden Nugget for market leadership. Although Golden Nugget made some gains last month to hold its lead, it saw a 4.4% drop in daily average revenue in November, while Borgata increased 6.1%. There’s now only an 11.1% difference in their total revenue, so another month like this would put the two in a dead heat to finish the year.

Hard Rock rebounded strongly from a weak performance in October. It increased its daily average revenue 18.7%. Conversely, Tropicana, which did exceptionally well in October, dropped 12.9%. The two had switched places in the market share standings last month, and have now switched back, though Hard Rock’s lead is slight at $6.3 million to $6.1 million.

NJ online gambling revenue breakdown

Revenue / ∆ Monthly (normalized) / ∆ Yearly:

  • Total: $91.83 million / +1.5% / +86.9%
  • Online casinos: $89.43 million / +1.6% / +87.7%
  • Online poker: $2.40 million / -1.6% / +60.6%

As mentioned, above, monthly total revenue was down for online casinos, but the daily average was up. However, the rate of that growth has roughly halved compared to gains from September to October. Likewise, year-on-year growth has slowed down somewhat. It remains impressive, at nearly 88%, yet this is the first month since March that revenue has dropped to less than double 2019 levels.

For poker, it’s the opposite story. Daily average revenue dropped 1.6%, yet its year-on-year increase of 60.6% represents an improvement on October’s 53.5%, and the largest margin since August.

These are quite small changes across the board. Although there was some shuffling around of individual licensees, the big picture at the moment is of a market that’s holding steady as the year winds to a close.

NJ online sports betting revenue

  • Total NJ sports betting: $50.6 million
  • Online sports betting: $43.7 million

November was a solid month for NJ online sports betting, but not nearly as good as October. The good news, from a market perspective, is that the downturn had to do with hold and not handle. Betting increased, but the books simply weren’t as lucky as they were last month.

Total bets received in October amounted to just over $800 million, including both retail and online channels. In November, handle for online sportsbooks alone was a whopping $872 million, while retail outlets added a further $60 million. The total, $932 million, represents a state record, and it shouldn’t be long before we see New Jersey exceed $1 billion in a single month.

Hold, on the other hand, dropped to just 5.4%. That’s not terrible, but it’s below average, and October’s hold was a relatively solid 7.3%. The likely cause was a sharp increase in betting on football, the sport on which New Jersey bettors have had the best luck this year.

As a result, combined revenue from both retail and mobile channels totaled $50,554,535, down from $58,508,647 in October. It was really only the online channel which suffered. Retail books more than doubled their revenue, in fact, albeit from only $3,342,647 to $6,841,203.

Handle totaled $803,096,172 across both retail and online channels, and hold was 7.3%, up from 6.0%.

The dominance of Meadowlands Racetrack continued to slip. While its retail channel rebounded strongly after an abnormally weak showing in October, its share of the market dropped to 49%, the first time it has been less than one-half since July.

Once again, the beneficiary of that was Resorts, which is home to Fox Bet and DraftKings. It now holds a 29% share of the market. Third place now is Ocean Resort, which claimed that spot from Monmouth Park. Meanwhile, Borgata has been faring poorly for several months, now down to just a 4.3% share from a high of 11.4% in August.

You can get more details about New Jersey’s skyrocketing sports handle over at Legal Sports Report.

Detailed numbers by operator/product

 Nov-20Oct-20Month Chg.Nov-19Year Chg.
Golden Nugget
Hard Rock
Ocean Resort
All Licensees
- Alex is a journalist from Dartmouth, Nova Scotia, Canada. Now site runner for Online Poker Report, he has been writing about poker and the online gambling industry in various capacities since 2014.
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