Interactive

US – New Jersey internet revenue climbs in February

By Phil - 14 March 2014

Despite there being less days in February than January, New Jersey experienced a nine per cent climb in online gambling revenue in the second month of the year.

In February, online gambling generated US$10.3m in revenue, up from $9.5m in January. Seven of Atlantic City’s 11 casinos are currently allowed to offer online gambling.

However the online gaming sector has still not been enough to reverse the city’s falling gaming revenue as a whole. February revenue came in at $199m, representing a six per cent decline from February in 2013. Online did help offset the losses, bringing the state’s overall gambling decline to 1.4 per cent compared to a year ago.

Borgata and party.poker generated $4.1m in online gaming revenue, for a market-leading 40 per cent share of New Jersey’s online gaming business. Borgata accounted for $3.1m in online revenue in February, posting a 14 per cent gain from January despite a shorter calendar. Borgata’s standalone market share was 30 per cent.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “Boyd Gaming continues to strengthen our position as a leader in online gaming.  We were particularly encouraged by the performance of Borgata’s online casino site, which achieved month-over-month revenue growth of 36 per cent, and more than 50 per cent on a per-day basis.   We have strived to create a first-in-class online gaming experience worthy of the Borgata brand, and it is clearly resonating with players across the state of New Jersey.”

“Looking ahead, we continue to see significant opportunities for future growth in New Jersey as we refine and enhance our online product.  Earlier this month, we successfully hosted one of New Jersey’s largest online poker tournaments to date, with a $145,000 prize purse.  And in mid-February, Borgata launched an Android-compatible app that can access 3G/4G networks, making it more convenient than ever to play at Borgata.  We have migrated our entire suite of IGT game titles to this app, ensuring that our mobile gaming experience meets the high expectations that players have for the Borgata brand. With an iOS version of this product now being finalised, we see significant further upside from mobile gaming in the months ahead.”

“We are pleased with the progress we have made so far in New Jersey, and will carefully consider future online opportunities elsewhere to determine which ones make strategic sense for our company,” Mr. Smith added.

Borgata statistics reveal that around 85 per cent of those who play online have not engaged in rated play at Borgata in two years.

Caesars Interactive had a 32 per cent market share in February. Tropicana saw the most significant gain in market share, with a 60 per cent gain over January results at $1.3m.

Some operators fell though. Both Trump Taj Mahal Casino Resort, which is partnered with Ultimate Gaming, and Trump Plaza Hotel and Casino, which is partnered with Betfair, reported less online revenue than in January. Trump Plaza dropped 11 per cent to $493,590, and Trump Taj Mahal fell 32 per cent to $587,323.

Having initially predicted up to $160m in tax revenue this fiscal year, the state has already reduced those expectations to $34m.

Governor Chris Christie’s administration has said it can no longer estimate the tax revenue coming from Internet gambling. “Given the complex connections between internet and on-site gaming, we do not break down the anticipated total collections between the two sources,” state Treasurer Andrew Sidamon-Eristoff said.