Online gambling and sports betting are paying huge dividends for New Jersey’s suddenly resurgent gambling industry.
According to the New Jersey Division of Gaming Enforcement’s July 2019 revenue filings, slot machine and tables game revenue at Atlantic City casinos generated $277 million during the month. But that pedestrian number starts to look a lot better when online gambling and sports betting are included.
The state’s online casinos set a new revenue record in July, with a $39.3 million month, and New Jersey sports betting operators contributed another $17.9 million.
That $57 million pushed total gaming revenue over $334 million for the month, making it New Jersey’s best July since 2011.
NJ Land-Based Casino Revenue Inches Up
July provides the first full-month comp for the expanded Atlantic City casino market that includes Hard Rock and Ocean Casino Resort – both casinos launched in late-June, 2018.
How the two new properties would affect the market continues to be a hot topic of debate.
The jury is still out when it comes to the Atlantic City supporting nine casinos. But the fears that any market share Hard Rock AC and Ocean Casino Resort grabbed would come solely at the expense of the existing casinos are proving false.
July 2018 saw land-based casino revenue increase 10.1%, which wasn’t surprising. The marketing surrounding the launches, coupled with the curiosity factor of two brand new casinos entering the market is going to boost visitation. The real test would come one year later.
The good news is the market held steady in July 2019, with land-based casino revenue ticking up 1.8%.
The year-over-year growth signals that the two new casinos have considerably grown the market, even if they’ve peeled off some customers from their competitors.
NJ Online Casino Topline Analysis
Golden Nugget remains the unrivaled top dog in the New Jersey online casino market.
The real race is for second place, with Borgata and Resorts vying for the number one contender title. Caesars is trying to creep into the conversation and could make some noise following the launch of 888’s upgraded Orbit platform in the market.
Tropicana continues to be the most stagnant, but consistent operator in the market, with a market share of around 10%.
The addition of Unibet has helped Hard Rock increase its market share to around 5%, while the other new casino property, Ocean, is barely keeping its head above the 1% line.
DFS Giants Continue to Dominate the Sports Betting Market
If NJ online casinos are an example of the haves and the have not’s, NJ sports betting operators are an example of the haves and have almost nothing’s.
The two DFS giants have leveraged their databases and sports-specific brands to maximum effect in New Jersey. And with nearly 85% of all sports bets placed online, the two companies are in the proverbial driver’s seat in the New Jersey sports betting market.
The Sports Betting Difference
New Jersey online casinos have experienced unprecedented growth since the onset of legal online sports betting in the Garden State. To borrow a line from Terri Hatcher’s Seinfeld character, cross-selling is real and it’s spectacular.
Prior to online sports betting, online casino growth had fallen below 20% in seven of the previous eight months. Since online sports betting was introduced, online casino growth has accelerated. And as the chart below clearly shows, the rate of growth has been increasing as operators integrate sportsbook and online casino platforms and wallets.
New Jersey Online Casino Authorized Sites
|Main Brand||Sub-Brand 1||Sub-Brand 2||Sub-Brand 3||Sub-Brand 4|
|Resorts||Mohegan Sun||PokerStars NJ||DraftKings casino||/|