New Jersey iPoker Just 15% Of iGaming Market In July

Home » Poker News » New Jersey iPoker Just 15% Of iGaming Market In July

Sunday, August 16th, 2015 | Written by Shane Larson

The New Jersey Division of Gaming Enforcement has released its latest iGambling results for July, and whilst the $12,531,991 generated by the state’s internet operators represented its third highest total to date, the $1,885,685 accounted for by online poker was just 15% of overall iGaming revenues, its lowest share of the market since the industry was first launched in November 2013.

iPoker Lowest iGaming Market Share Yet

The $1.885 million online poker revenues generated in July was 2% higher than the $1.835 million collected the previous month, which also happened to be the state’s lowest monthly tally to date. Compared to the $2.15 million collected in July 2014, however, revenues were down by around 14%, reflecting a wider downturn noted in the overall global online poker market. Even more troubling, online poker has now slipped to just 15% of the overall online gambling market, down from a 21.31% market share in 2014.

Caesars and Borgata iPoker Traffic Declines

Dominating NJ’s iPoker market are just two operators, with Party/Borgata commanding 51.8% of revenues, and Caesar’s/888 the remaining 48.2% in July. Nevertheless, both companies have seen their traffic decline since the start of the year, with Caesars’ (WSOP/888) seven day player average down from 220 players in February to its present level of 180 players, and Borgata’s (Party) traffic dropping to 120 players from 150 players in December 2014. Furthermore, July was the second month in a row the operators were unable to crack $1 million, with WSOP/888 collecting $999,322 in revenues, and Party Borgata $886,363.

PokerStars Where Art Thou?

Since Black-Friday, 2011, PokerStars has been the dominant force keeping the global online poker industry together, without which the market may very well have fractured beyond all recognition. The online poker room currently accounts for more than half of all global iPoker traffic, with its superior software, and innovations instrumental in driving the industry forward. Despite being locked out of the US market for contravening the country’s UIGEA,
its founder Isai Scheinberg is widely recognized as having done more than anyone else to grow the industry over the past two decades, and as poker pro Terrence Chan wrote recently:

“PokerStars expanded into, and created, brand new markets where there were very few poker players. We have all benefited from the company that this man built. Some made careers out of the poker industry in various ways. But millions of others simply found a way to play a game they found enjoyable.”

Although Scheinberg has since sold the company to Amaya Gaming, PokerStars continues to provide the standard for other operators to emulate, and if it is eventually granted a New Jersey iGambling license by the end of this year, the poker room is sure to give the state’s poker industry the boost it so desperately needs.

Online Casinos Up 7.1%

While online poker continues its decline, internet casino games are now the real driving force behind the iGaming industry, with New Jersey’s online slots and table games producing a healthy $10,646,306 in revenues, 7.1% higher than the previous month, and a whopping 34.4% more than the $7.92 million collected in the same month in 2014.

iGambling Up 21.7% y-o-y

Overall, online gambling generated revenues of $12,531,991 in July, which was a 21.7% improvement on the $10.07 million produced last July. Leading the market in terms of growth was the Golden Nugget, whose revenue soared by 188.6% to $2,726,399, followed by the Tropicana up 39.7% to $2,743,209. Conversely, Caesars was the only iGaming operator to report a year-over-year decline, with revenues falling by just 1.6%. In terms of market share, Borgata/Party Poker leads the way with 30.5% of revenues, followed by the Tropicana (21.9%), Golden Nugget/BetFair (21.7%), Caesar’s Interactive (21.3%), and lastly Resorts with 4.4% of revenue, 1% higher than in June.

Land-based Casinos Down 6.1% to $257m

Altogether, Atlantic City’s land-based casinos generated total revenues of $257.5 million in July, which was 6.2% less compared to $274.3 million taken in July 2014. Back then, however, the state had 12 casinos operating, and if revenues from the now shut 4 casinos are excluded, last July’s revenues would have totaled $245 million, with July 2015’s revenues higher by 8.1%.

Leading Atlantic City’s casino market in terms of revenue was the Borgata, whose business was 19.2% higher at $75.6 million last month. Furthermore, the casino enjoyed its best slot machine month in the venues 12-year history, and commenting on the results Borgata VP of operations, Joe Lupo, said:

“Borgata’s success is attributable to our bullish outlook on the market and commitment to reinvesting in our product, customers and employees.”

Next highest was Harrah’s with $36 million in revenues, up +1.5% compared to July 2014, followed by Tropicana with $31.9 million (+ 7.5%), Caesars with $29 million (3.1%), the Golden Nugget with $22.8 million (+19.2%), Bally’s with $22.7 million (flat), Trump Taj Mahal with $19.1 million (-11.8%), and finally Resorts with $17.3 million in revenues, up 20.8% year-over-year.