New Jersey iGaming Soars 9.8% To $13.2m In March 2015

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Friday, April 17th, 2015 | Written by Shane Larson

New Jersey’s online gambling industry plumbed new depths in November 2014 after revenues dropped to just $8.74 million, but since then the market has been climbing higher and the state’s latest figures for March now represents four months of growth for the Garden State. According to the New Jersey Division of Gaming Enforcement (DGE), online gaming operators generated $13.2 million in March, a 9.8% improvement on the $11.9 million taken in the same month in 2014, while the agency reported that the state’s eight remaining land-based casinos also achieved growth last month.

iPoker Falls 29.3% Y-o-Y

Whilst online poker reported higher earnings, with revenues jumping by 10.1% to $2.27 million in March compared to the $2.04 million taken in February, the games Month to Month comparison was not so positive, with revenues plummeting by 29.3% to $2.27 million from the $3.21 million generated in March 2014.

Online Casino Games Up 20.5%

Online casino games continue to provide the growth in New Jersey’s overall online gambling market, and in March casino games soared 23.7% to $10.94 million, higher by 23.7% compared to the $8.36 million taken in February 2015, and a 20.5% improvement on the $8.7 million noted for March 2014.

Breakdown Of Market Share

New Jersey‘s online poker market now accounts for 17.2% of total online revenues, down from 26.9% in March 2014, while online casino revenues have improved to 82.8% versus 73.1% for the same month in 2014. As far as the various operators are concerned, Borgata/PartyPoker and Caesar’s/888poker now command a 55.2% to 44.8% share of New Jersey’s total online poker market.

In terms of overall online gambling revenues, Borgata/PartyPoker generated $4.4 million in March, or a 31.8% share of the market, while the Tropicana’s casino games-only offering was in second place with a 23.1% revenue share, although it is now the state’s number one casino games website. Meanwhile, the Golden Nugget/BetFair accounted for 22.5% of revenues, Caesar’s Interactive 21.4%, and Resorts a mere 1.2%, although that could all change dramatically if the NJDGE eventually approves PokerStars admission into the market.

AC Casinos Either +2.3% or -12.6% In March

Atlantic City’s eight casinos generated $203.8 million in March, a 2.3% gain on the $199.2 million the very same eight casinos took in March 2014, with much of the improvement a result of Internet gambling revenues, which are now up by an impressive 19% for the first quarter of 2015. Commenting on Atlantic City’s latest figures, Matt Levinson, chairman of the New Jersey Casino Control Commission, said:

“Gaming revenue at the eight operating casinos has increased for seven of the last eight months, and last week those casinos reported a 12 percent increase in gross operating profits for all of last year. With new attractions coming to Atlantic City, like Bass Pro Shop, Harrah’s meeting center and the new sound and light show at Tropicana, I anticipate this trend will continue into the summer months.”

However, Atlantic City actually generated $233.4 million in March 2014 when the now closed Atlantic Club, Showboat, Revel, and Trump Plaza were still operating. Therefore, when overall revenue comparisons are made, in reality AC noted a 12.6% decrease in revenues. Breaking down the figures further, the Golden Nugget saw revenues jump 41% to $16.2 million; Harrah’s was up by 11.4% to $32.3 million; the Borgata was up 7.7% to $60.2 million; while Resorts and Tropicana revenues were fairly flat at $11 million and $21.1 million respectively.

On the other side of the coin, Bally’s was down 11.1% to $15.8 million; Caesars was down 4.1% to $23.2 million; and Trump Taj Mahal was down 23% to $14.7 million

Revel Saga Ongoing

While Atlantic City’s’ remaining eight casinos are starting to reap the rewards of a streamlined gambling market, the $2.4 billion Revel casino continues to languish in limbo and despite being bought recently for just $82 million by Florida property developer Glen Straub and his Polo North Country Club, the mega-resort remains empty. Furthermore, an ongoing dispute with ACR Energy Partners has seen the company cut off power to the resort, leading to Straub sending an eviction notice to ACR demanding it removes its $160 million plant from his property. Partly blaming ACR for Revel’s woes, Straub has threatened to keep Revel shut for years in the event of no agreement on the issue, and as he commented recently:

“”We’re debt free. We don’t need to do business with them. We’ll erase them off the map. That’s what caused the bankruptcy.”