Online Gambling Industry Growth in New Jersey
Since the successful launch of NJ online gambling in the Garden State in 2013, the state has seen many changes and signs of growth. These changes include state revenue, online casino distribution, and the NJ online gambling industry as a whole. New Jersey has seven iGaming licensees, all of which are contributing to the state's booming economy.
NJ online gambling revenue
Since the legalization of online gambling in the Garden State, by mid-2017, New Jersey exceeded $100 million in tax revenue. This came trickling in from the online gambling websites within the state. From here on out, it is expected for these digits to continue to multiply. The best online gambling sites in the state are collectively averaging at least $20 million a month in revenue. Records show that New Jersey's tax rate is at 15% for online gambling providers, while land-based Atlantic City casinos are charged 8%.
NJ online gambling sites topped the charts in December 2018 with a revenue-record of just over $29 million. Online casinos raked in $27.2 million of the total while online poker sites pulled in $1.76 million. Four of New Jersey's online gambling licensees broke their own revenue records as well. The month of December's tax revenue from New Jersey's best online gambling sites hit $5,076,446.
The year in total saw New Jersey's online gaming and poker sites pull in a whopping $298.7 million. This was an impressive $53 million more than what was made in 2017 through poker sites and online gaming.
Many online casinos surpassed their personal records as well. Golden Nugget reportedly ended the year with a whopping $10.17 million. Just behind Golden Nugget came Borgata, Resorts, and Hard Rock with their own record-breaking periods. Behind them, Caesars came in a bit slow hitting just under their previous high mark.
Sports betting and online gambling in NJ
Many online casinos have links to sports betting sites and mobile betting apps.
Play SugarHouse Sportsbook was originally a branch under Golden Nugget, however, recently the sportsbook partnered with The Meadowlands. Although the sports license is with the Meadowlands, its casino license remains with Golden Nugget. Players can navigate to the virtual casino via the sportsbook site.
Another partnership under Meadowlands, FanDuel sportsbook - which is actually owned by Paddy Power Betfair - is operating an iGaming site under Golden Nugget. FanDuel sportsbook customers navigate to Betfair through the “Casino” button in the website’s menu, helping Golden Nugget to pull in more revenue.
DraftKings, in partnership with Resorts, has recently created a more dynamic approach to their online and mobile product through adding a selection of casino games. This technique was created to bring in more players to certain games yielding higher profit margins. DraftKings is currently the sportsbook market leader in New Jersey.
On the downslide
Some companies are not experiencing turnouts as positive as others, however.
Ocean Online Casino has had trouble keeping up with its rivals, especially Hard Rock’s new iGaming site, which has seemingly taken the Atlantic City casino and online gaming market by storm. The online casino had a good run for its money however, out-banking Hard Rock in November 2018. Unfortunately, a series of decreasing months in terms of revenue, along with Ocean’s brick-and-mortar casino taking a hit, led the owner to a decision to sell the company.
In the majority of the last two years, NJ online poker has decreased in revenue totals as well. Many suspected that the interstate compact between Nevada and Delaware would help the NJ online poker market to grow, however, it just wasn’t enough to make a difference.
End of the year numbers ranked in favor of Caesars online poker who was responsible for 41 percent of revenue. PokerStars claimed 34 percent while Borgata pulled in 25 percent of the total.
All in all, NJ online gambling sites are on the rise in terms of revenue. Although NJ online poker took a shallow dive, online casino revenue went up by an impressive $56 million in 2018. Nearly all NJ gaming sites beat their 2017 totals at the end of 2018. Golden Nugget even increased by 53 percent. At the closing of the year, New Jersey raked in $52.2 million in tax revenue.