US Online Poker Enjoys a Positive 2016

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Wednesday, January 18th, 2017 | Written by Charles Washington

While those following the online poker industry have expressed uncertainty about the game’s future under a Trump administration, it’s worth noting that there was some positive news for iPoker in 2016, even though no state moved ahead with legislation. Here are some of the major stories concerning the USA’s three regulated online poker markets last year.

NJ iPoker Revenues Up 11%

In March, PokerStars re-entered the US market as a legal business and started operating under a New Jersey license. The online poker site quickly became the state’s top performer, which most industry experts expected, but what did come as a shock, though, is that PokerStars did not disrupt the entire New Jersey online poker market. In fact, all three operators in the state managed to perform well throughout the year with the market shares staying relatively stable with Resorts/PokerStars at 39.5 percent, WSOP/888 Poker at 30.6 percent, and Borgata/partypoker at 29.9 percent. Following the World Series of Poker, WSOP and 888 Poker even managed to surge past PokerStars for a short while.

New Jersey’s iGaming market finished the year on an impressive note after generating $18.4 million in revenues, 31% higher than the same month in 2015. It also set a new monthly record, having smashed the previous record set in July 2016 of $17.4 million. From December’s total, $2.1 million was derived from iPoker, up by 6% year-over-year.

Although online gaming revenues rose and fell throughout the year, the Garden State’s market ultimately grew by a massive 32% to $196.7 million in 2016, representing an all-time high for the state. From that tally, online poker accounted for $26.5 million of revenues, up 11% versus 2015, while online casinos generated $170.2 million last year, higher by 36% compared to the previous year. As a result, New Jersey currently controls around 90% of the country’s regulated internet casino market.

Revenues by Operator:

Borgata: $47m
Golden Nugget: $42.2m
Caesars Interactive NJ: $38.7m
Tropicana: $37m
Resorts Digital: $31.8m

iPoker Revenues:

2016: $26.5m
2015: $23.8m
2014: $29.1m

Nevada up 9%

Online poker remained strong in Nevada, and while during the summer months the vertical slumped in New Jersey, in Nevada players continued to take to the virtual tables. In fact, in June 2016, when operators in New Jersey were struggling, WSOP Nevada brought in $1.13 million.

Overall, WSOP experienced a great year with an estimated 9 percent increase in gross gaming revenue over 2015’s total. With Nevada’s only other online poker operator, Real Gaming, showing only trace visitors, it is therefore reasonable to take this figure to mostly represent the whole of the Silver State’s internet market.

Nevada also took the first baby steps toward signing an interstate compact to pool players with New Jersey, and while industry experts believe it will be a long time before any such agreement is made, many are seeing Governor Brian Sandoval’s willingness to consider it as a victory, especially as in the past Nevada has been reluctant to even discuss the topic.

Delaware Market Higher

Delaware’s online poker market is still struggling, with its three online operators trying to remain afloat despite a very small number of players at the tables, as well as a very heavy tax burden imposed under state laws. Nevertheless, the market still saw its internet revenues grow during 2016.

In March, the Delaware Lottery reported gross gaming revenues of $37,324, which at first glance may seem paltry, but was actually a 32 percent improvement over February’s figure. Gross gaming revenues then continued to climb throughout the spring with May‘s total double what they had been the previous year, most of which, however, was derived from video lottery games.

Overall, the 2016 fiscal year resulted in over $2.5 million in iGambling revenues for Delaware, compared to $1.8 million for 2015, and $1.4 for 2014. In the meantime, online poker is still not a major contributor to the state’s gambling market, but at least it is still continuing to make modest growth gains. Furthermore, industry insiders are optimistic that Delaware may rethink their taxation laws in 2017 in order to give its online poker operators more opportunities to run successful enterprises.

And Finally Pennsylvania

Finally, there are high hopes that Pennsylvania may regulate online gambling in 2017, which, if it does happen, has the potential to encourage other US states to follow suit. One lawmaker who is throwing his suport behind the move is Senator Mario Scavello, chairman of the Senate Community, Economic and Recreational Development Committee, who recently stated:

“Sometime in March, we’ll have something done and passed in the House and Senate. It looks like online gaming has the support to pass. We can look at other expansions.”