Online gambling in Atlantic City has turned out to be a winner
Four years ago, when Atlantic City launched its online gambling market, there were many naysayers on the commercial viability of the sector, its alleged propensity to create problem gamblers, and its gloomily predicted negative impact on land casino revenues.
All have been proved wrong.
Despite the downward trending land casino business in Atlantic City at the time, and the vigorous efforts of Sheldon Adelson-inspired PR ad legislative attacks in the media and by politicians, the vertical has not only survived but prospered and looks set to continue doing so.
Gambling industry journalist and analyst Steve Ruddock summed up the success story to date in a statement Friday, saying:
“Four years of data shows us the incredible potential of legal online gaming. Online play has increased the revenues and customer bases of New Jersey’s land-based casino operators. And the residents of New Jersey have benefited from being able to safely gamble online at regulated sites that protect their financial information, offer fair games, and promote responsible play.”
Online gambling launched in New Jersey with online companies partnering with licensed Atlantic City land operators on November 26, 2013, and up to the end of October this year these online enterprises have delivered $682.6 million in lifetime gross revenue, Ruddock reports.
Online casino games have been the biggest draw, generating $577.96 million (85 percent of the total), whilst online poker has brought in $103.1 million (15 percent of the total), and online gambling sites have contributed $119.3 million in tax revenue to state coffers.
This year to end October alone New Jersey’s online casinos have generated $204.2 million in gross revenue, with year-over-year growth the hallmark of the young industry.
Projected GGR for the full 2017 year is $248 million – up 26 percent on last year’s total. That follows 32 percent y-o-y GGR growth in 2016; 21 percent in 2015 and 1,363 percent growth in 2014.
Ruddock notes that in 2013 the launch of online gambling saw 13 online casino and poker brands, which by October this year has grown to 20, with these operations accounting for almost 10 percent of New Jersey’s total casino revenue.
Ruddock remains optimistic for the sector, noting:
“There are two reasons to believe 2018 is going to be another growth year in New Jersey. First, online casinos are showing no signs of slowing down. Second, online poker appears to be destined for growth after New Jersey entered into an interstate agreement with Nevada and Delaware, in addition to the recent legalization of online gaming in Pennsylvania, that could end a prolonged period of stagnation.”
Breaking the official numbers down, Ruddock says that the online market leader in GGR terms is Borgata Hotel Casino & Spa, home to the Borgata, playMGM, Party, and Pala online brands, which has generated $180.7 million through Oct. 31, 2017.
Golden Nugget Atlantic City, home to the Golden Nugget, Betfair, and SugarHouse online casino brands, is second all-time with $148.2 million, chased by Caesars Interactive Entertainment, which includes the Caesars, Harrah’s, and 888 brands, at third all-time with $142.4 million.
Tropicana Casino & Resort, which includes the Tropicana and Virgin brands, is fourth with $129.1 million in lifetime revenue, and Resorts AC, which includes the Resorts AC, Mohegan Sun, and PokerStars NJ brands, has generated $83.7 million in lifetime revenue.
Borgata has generated the most lifetime online poker revenue at $45.8 million. Caesars follows at $39.7 million, with Resorts rounding out the list at $17 million (Resorts did not launch online poker until March 2016).