New Jersey Online Gambling Market Grows Despite Overall Casino Losses
Despite New Jersey’s casino win coming in last month at $180.1 million, a 5.8 percent decrease compared to last year’s November win, NJ online gambling revenue has continued to grow at a rapid rate.
In fact, the state’s regulated online gambling market fell just short of its all-time high.
Revenue gains for NJ online gambling sites
According to the November press release by the New Jersey Division of Gaming Enforcement, not only has online gambling in the state continued to grow, it is growing by leaps and bounds.
In the month of November, the state pulled in $17.2 million for its online casino win, up 29.9 percent from last November’s $13.2 million.
Breaking the numbers down further, online casino revenue shot up 34 percent year-on-year to $15.1 million, while online poker revenue gained a respectable 6.4 percent to $2.1 million. The year-to-date overall online revenue is now $178.3 million, up an encouraging 32.3 percent from last year.
How this affects overall NJ gambling numbers
As the revenue figures continue to climb, they have begun to offset the losses Atlantic City casinos are posting on the land-based side.
With the online market taken into account, the total November win for the state came in at $197.3 million. This number represents a year-over-year loss of 3.5 percent. Without online casino revenues, however, the state would have lost 5.8 percent.
Although the offset may appear insignificant to some, as New Jersey’s online gambling market continues to grow, we can expect revenue from the online sector to take on a larger and larger role in Atlantic City casinos’ overall success.
Best individual performers
The Borgata has been at the top of the state’s revenue ranks since it opened, with the exception of the Golden Nugget usurping the title this September and October.
The leader in revenue this November was again the Borgata, retaking the top spot from the Golden Nugget. That said, it was only by a minuscule margin.
The Borgata-linked sites brought in a total of $3.809 million ($3.2 million in casino win and $632 thousand from poker) and the Golden Nugget brought in just $7,000 less with its casino-only site.
Other online casinos also continue to do quite well. Caesars was not far behind the Borgata and the Golden Nugget, with $3.36 million in revenue for the month. Resorts was just belowRes Caesars, bringing in $3.2 million, almost a million of which was from its online poker brand, PokerStars.
In the last place were the Tropicana casino-only sites, which brought in just under a $3 million win.
The future of online gambling in New Jersey
New Jersey racetracks are looking to capitalize on the growing online market by opening “Internet Cafes” at Meadowlands Racetrack in East Rutherford and Monmouth Park in Oceanport.
If Assembly Bill 4255, introduced in October by Assemblyman Ronald Dancer (R-District 12), goes through, we can expect online gaming numbers to skyrocket.
The bill would allow for “horse racetracks to be available for placing wagers at casinos in Atlantic City using the internet.” New Jersey racetracks could “enter into an agreement with a casino located in Atlantic City or such a casino’s Internet gaming affiliate.”
Critics of the state’s plan to expand online gaming to the racetracks have pointed out that just last month voters rejected North Jersey casino expansion by a huge margin. They argue that by offering online gaming at the tracks, New Jersey politicians would be circumventing the democratic process.
Proponents of the bill, on the other hand, argue that their new plan would not require amending the state constitution, as there is nothing inherently illegal about racetracks partnering with existing Atlantic City properties.