New Jersey iGaming Jumps 22% To $11.6m In January

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Friday, February 13th, 2015 | Written by Shane Larson

Following a strong end to 2014 which saw iGaming revenues improve by 63.6% to $10.7 million in December, New Jersey’s online fortunes have continued their winning ways with revenues once more rising, this time by 22.3% to $11.6 million in January, compared to the $9.5 million reported for the same month last year. The good news was mixed, though, with casino games up by an impressive 54% to $9.3 million, but online poker falling by 33% to $2.3 million compared to January 2014. Including results from brick-and-mortar casinos, revenues were up by 18.8% to $197.6 million in January, with $15.1 million in taxes subsequently funneled into state coffers.

Online Poker Plummets 33%

The marginal role which poker now occupies in New Jersey’s monthly iGaming results have been well documented over the past year, and in January the game accounted for just 21% of total revenues, or $2.3 million. That figure is lower by 33% year-over-year (YOY) but higher by 11% over December 2014. The Garden State has only two licensees offering regulated online poker, and in January the Borgata (Party Borgata) generated $1.3 million in revenues, while Caesars (WSOP.com, 888poker) collected a little over $1 million.

Online Casinos Soar 54%

In the meanwhile, online casino games generated $9.3 million in January, up 54% YOY and higher by 8% from the previous month, with the revenues by casino breaking down as follows:

Tropicana: $2.6 million
Borgata: $2.5 million
Golden Nugget: $2.5 million
Caesars: $1.4 million

iGaming Jumps 22.3% Overall

When online casino games and poker are combined, New Jersey generated 22.3% more revenues, or $11.6 million, in January with Borgata continuing to lead New Jersey’s iGaming market with $3.8 million, slightly less than the $3.9 million reported in January 2014. In comparison, the Golden Nugget saw a huge 759% YOY rise to $2.5 million, while the Tropicana, too, saw its online gambling revenue soar 204.4% to $2.6 million.

Land-based Casinos Up 18.8%

Less competition in New Jersey’s land-based casino market is really starting to boost the business of those eight casinos still operating after a disastrous 2014 which saw four AC casinos shut shop. In January, Atlantic City’s surviving casinos subsequently generated 18.8% more revenues at $197.6 million, with slots and table games accounting for around $186 million, and iGaming the remaining $11.6 million. Even without including the casinos closed last year, AC’s casino revenues were still almost 1% higher YOY, and as New Jersey Casino Control Commission chairman Matt Levinson,explains:

“Seven out of them were up, and six reported double-digit increases.. While it is always risky to say we’ve turned a corner or that there is light at the end of the proverbial tunnel, let me say that January’s results are very encouraging. They show that there are a lot of people who want to come to Atlantic City and enjoy what it has to offer.”

Borgata Continues To Lead Market

The Borgata Hotel Casino continues to lead Atlantic City’s gambling market, both online and land-based, with revenues up by 16.6% to $60.9 million, while the Golden Nugget reported the biggest jump in revenues last month, with business up an impressive 69.6% to $18.3 million. According to Golden Nugget general manager Tom Pohlman, the casino is beginning to reap the rewards of the $150 million renovation project undertaken in 2012, and as he explains:

“People are finally recognizing the level of our restaurants and hotel product. People come in and see us once, and they continue to come in.”

Another of New Jersey’s casinos benefiting from renovations and a retheming was the Resorts Casino Hotel’s Margaritaville, Atlantic City’s oldest casino, which posted a 32% increase in revenues to $11 million.

“With all of our improvements and refinements in service, we expect that business will take off for Resorts,” commented the casino’s CEO Mark Giannantonio.

Brick-and Mortar Results (YOY):

Bally’s — $15.8 million (+6.7%)
Borgata — $60.9 million (+16.6%)
Caesars — $23.1 million (+29.8%)
Golden Nugget — $18.3 million (+69.6%)
Harrah’s — $30.7 million (+20.1%)
Resorts — $11 million (+31.8%)
Tropicana — $22.5 million (+28.6%)
Trump Taj Mahal — $12.1 million (-21.2%)

AC Market Undergoing Correction

The Atlantic City market is currently undergoing a correction following years of saturation which eventually saw supply far outstripping demand. In 2014, for instance, not only did four casinos close down, but revenues came in at $2.74 billion, a figure not seen since 1988, and down by 48% from a peak of $5.2 billion in 2006.