New Jersey iGaming Drops To Lowest On Record In October

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Friday, November 14th, 2014 | Written by Shane Larson

The New Jersey Division of Gaming Enforcement has released its gambling figures for October, revealing a 4.4% decline in revenues to $207.2 million, compared to the $216 million generated in October 2013. From that tally, Atlantic City remaining eight casinos reported revenues of $197.7 million, while online gambling contributed a further $9.5 million in October, down from the $10.2 million taken in September.

Online Poker Lowest On Record

Online gambling brought in almost $9.5 million in October, down 7.4% from the $10 million generated in the previous month and marking two months of consecutive declines for the state’s iGaming industry. Online casinos then accounted for $7,517,027 of revenues, while iPoker revenues fell by 5.63% to just $1,967,904, the lowest total on record and down by $117,391 compared to September.

Even more disappointingly, the drop off came at a time of year when internet poker revenues are supposed to be near their peak, but while Ultimate Poker’s exit from the NJ market in September goes some way to explaining the fall off in revenues, both Borgata and Caesars still reported their lowest tallys since launching. The Borgata license, which has a 54% share of NJ’s iPoker market based on revenue, generated 9.21% less revenues at $1,056,711, whilst Caesars (WSOP.com/888poker) with 46% of the market noted a mere 0.37% drop in business.

Trying to strike an optimistic note on October’s disappointing results, Global Gaming Business Magazine analyst Roger Gros, said:

“We might expect to see some better internet gambling figures in the winter, especially if it is cold or there is bad weather, because people will be looking for something to do while they are shut in.”

Revenues By Online Gaming Licensee

Bearing in mind some licensees operate multiple sites, this is the breakdown of New Jersey’s iGaming revenue for September:

Borgata/Party (-6.3%)

Poker: $1,056,711(-9.2%)
Casino: $2,183,244 (-4.8%)

Caesars (-7.7%)

Poker: $911,193 (-0.4%)
Casino: $1,548,224 (-11.5%)

Tropicana/Virgin (-5.9%)

Casino: $1,925,238

Trump Plaza/Betfair (+11.5%)

Casino: $855,869

Casino Decline Expected Following Closures

Atlantic City casinos generated $207.2 million in October, 4.4% less revenues than a year ago. Back then, however, the state had four more casinos than now, and if the casinos which have shut down in 2014 are excluded, the remaining casinos actually saw their revenue rise by 19.3%, with business higher at seven of the eight surviving casinos.

Not including the $9.5 million added by New Jersey’s iGaming industry, however, Atlantic City casinos’ gaming revenue in October were up by a more modest 13.9%. In other words, New Jersey’s October gambling revenue either fell 4.4%, rose 13.9%, or rose 19.3% depending on your point of view. Commenting on the October’s figures, casino analyst Roger Gros, explained:

“While overall revenue has declined, I think people who are still coming to Atlantic City are continuing to come. I think there’s going to be some good news down the road here at least. I think that the closing of the four or five casinos, however far we’re going to go here, is going to really be good for the surviving casinos and good for the city.”

Borgata Continues To Dominate NJ

In October, the Borgata continued to dominate Atlantic City’s land-based casino market with its revenues rising by 16.2% to $55.3 million; followed by Harrah’s up 16.8% to $32.2 million; and Caesars up 12.8% to $30.2 million. Next, Tropicana reported an impressive 70.9% rise in revenues to $23.5 million; and Bally’s a 1.4% increase to $17.5 million; while bucking the trend Taj Mahal was down by 17.4% to $16.7 million. Finally, revenues were up at the Golden Nugget by 67.3% to $15.9 million; and Resorts was up by 14.6% to $12.2 million.

NJ Becoming A New All-Round Resort

The positive results coming from Atlantic City’s surviving casinos has provided optimism that the city’s gambling market is starting to stabilize following a spate of recent closures, and that AC is beginning to transform itself into a new well-rounded tourist destination. As Matt Levinson, chairman of the state Casino Control Commission, commented:

“Seven of the eight casinos reported increases in October, a sign that gaming revenues are starting to stabilize while non-gaming revenues are growing.. Celebrity chefs are opening new restaurants here, Bass Pro Shops and the new meeting center at Harrah’s are nearing completion and just yesterday Stockton announced it plans to create a new campus in Atlantic City at the former Showboat Hotel Casino.”