- US Online Poker
- US Online Casinos
- US Online Sports Betting
Online gambling revenue is saving the day in New Jersey.
The state released numbers today for February online gambling market revenue. The figures show that section of gaming revenue brought in 84.5% more revenue, or $198 million, in January and February than it did over the same months in 2020. In February alone, iGaming generated $94 million in revenue compared to $52 million last year, according to figures published by the New Jersey Division of Gaming Enforcement.
This boost helped New Jersey’s overall gaming revenue remain steady, at $288 million in February. That total represents a 0.3% rise over February 2020’s $287 million.
Though the market remains strong, it didn’t set any new records in February. New Jersey online casinos and poker room revenue fell nearly 10% from January’s high.
Last month’s total online casino and poker room revenue broke into the nine figures for the first time. January’s totals reached $103,771, 312, while February’s $93,810,486 represented a decrease of $9,960,826. The change is entirely due to the shorter length of the month, however. Taken as a daily average, February revenue was within one-tenth of a percent of January’s.
That said, it took $5 million in promotional spending just to break even. Casinos increased such spending by one percentage point in February over January, to 5% of gross revenue on average.
Still, the $94 million online casino and poker room total for February far outpaces the $52 million of February 2020.
Among the entities offering online sports betting, only Monmouth Park saw a gain. Online sports betting revenues rose 17%, to $2.5 million.
The big surprise for the market that benefits from New York bettors traveling to place wagers is Super Bowl betting didn’t appear to reach the end zone. While sports betting revenue rose 172% to $46 million from $17 million, year-over-year, it didn’t make up for lost casino revenue.
Perhaps due to pandemic restrictions, retail casino revenue decreased by 32% year-over-year, to $148 million. Retail sports betting fared even worse, down 56%.
The market leadership saga continued between front-runners Borgata and Golden Nugget in February. However, third-place Resorts lost ground again after appearing to make it a three-horse race in January.
All casinos but Caesars saw poker and casino revenue fall month-on-month. This happened despite most operators increasing their promotional spending.
Golden Nugget Online Gaming held on to the top spot on the revenue charts, at $28 million, which represents a 41% year-over-year increase. But Borgata‘s astronomical 216% annual climb to $26 million in online gaming revenue is evidence that it being home to BetMGM online casino is highly advantageous. March should only show higher numbers, now that the BetMGM app is available on Google Play, and we could see a change in lead any month now.
Conversely, Tropicana’s $6.5 million in February represents a slide from over $7 million in January. Even so, the license is up 69% over its February 2020 revenue.
Smaller players made significant gains:
New Jersey’s online poker revenue dropped 10% for the month. This decline is almost identical to that of online casinos, and is likewise the result of the shorter month.
The $2.5 million total includes a contribution of nearly $1 million from market leader Caesars. All three operators saw a drop in February.
This vertical can be volatile, though. In February 2020, online poker revenue equalled $1.8 million. Two months later, it exceeded $5 million thanks to the shutdown of retail casinos.
The fluctuations happen for each license holder, too. For instance, Borgata collected $796,647 in revenue from NJ online poker in February 2021. While down from January’s $926,288, it’s about double the February 2020 total of $454,527. However in April 2020, the casino saw more than $1.2 million in online poker revenue.
Similarly, online casino revenue fluctuates, but not concurrently with online poker dollars. The DGE reported February numbers of more than $91 million surpassed the previous year’s $50 million. But January’s $101 million was more than double that total.
Despite the Feb. 7 Super Bowl, bettors only wagered $743 million during the month, down from nearly $1 billion in January.
Sports betting revenue decreased for New Jersey sportsbooks, too. Although February’s figures illustrate online sports betting revenue added more than $46 million to bank accounts, the hold rate was 6.21 percent. In January, the revenue reached nearly $83 million and the hold rate was 8.62%.
Even so, online sports betting revenue eclipsed retail revenue, at $117 million and $12 million year-to-date, respectively.
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