(ATLANTIC CITY, New Jersey) — New Jersey’s legal online gambling industry closed 2017 with a record $245.6 million in annual revenue. The year-end gross revenue record is up 24.9 percent from 2016 and 65 percent from 2015, and there are reasons for even more optimism for the year ahead, according to analysts from PlayNJ.com.
“This has been a remarkable year for New Jersey’s legal online gambling industry,” said PlayNJ.com lead analyst Steve Ruddock. “All eyes will be on the state in 2018 to see if the industry can keep up its torrid pace of growth. Certainly, most of the key indicators point to significantly more growth ahead.”
The state’s regulated online casinos combined to generate $20.8 million in December, according to the New Jersey's Monthly Internet Gross Revenue Report, released on Friday. December’s tally was the 10th consecutive month that online casinos have posted more than $20 million in gross revenue, was up 0.7 percent from $20.6 million in December, and up 13 percent from $18.4 million in December 2016.
Already with the annual gross revenue record in hand, the year-end report solidified the industry’s new high-water mark. The dramatic year-over year gains are not new for the young industry:
$245.6 million in gross revenue in 2017, up 24.9 percent from 2016
$196.7 million in 2016, up 32 percent from 2015
$148.9 million in 2015, up 21 percent from 2014
$122.9 million in 2014, up 1,363 percent from 2013
$8.4 million in 2013 (less than two months)
“After a strong 2017, there are multiple reasons to believe the New Jersey online gaming train will continue gain steam in 2018,” Ruddock said. “Operators are increasing their catalogue of games and launching innovative new products, such as virtual sports.
“With the openings of Hard Rock Atlantic City and Ocean Resort Casino in the summer, two new major players will join the current crop of online operators and expand the overall market,” Ruddock added. “And if the Supreme Court rules in favor of New Jersey sports betting, the state's casinos could be taking wagers in time for the next NFL season.”
Changes in the market, namely legalized online gambling in Pennsylvania, could shift the dynamics of the industry, too.
“With Pennsylvania's emergence as an online gaming state, New Jersey online casinos will have to step up their marketing game,” Ruddock said. “Up to this point, New Jersey online operators have largely avoided advertising in the costly Philadelphia market. But that spend would be worthwhile if New Jersey operators are allowed to launch online casino websites in Pennsylvania.”
December pushed the state’s online gambling industry toward some impressive totals:
- New Jersey online casinos paid $3.6 million in taxes in December, pushing the collection to $42.98 million for the year. That is up from $34.4 million in 2016. Since New Jersey legalized and regulated online gambling, the Garden State’s online casinos have generated $126.6 million in tax revenue for the state.
- In 2017, New Jersey’s online casinos averaged $20.5 million per month in gross revenue. The record for a month is $21.7 million, set in March 2017.
- New Jersey’s online casinos have now generated $723.3 million since the industry’s inception.
- Online casino games generated $18.8 million in December. The category generated $221.3 million for 2017 and has generated 614.8 million in lifetime revenue.
- Online poker brought in $1.9 million last month to push the annual total to $24.3 million. Online poker has now generated $107.4 million in lifetime revenue.
Some other key points from the December report:
- Online casinos generated $669,601 per day during the 31 days in December, which included the Christmas holiday. That is down slightly from $687,007 per day during the 30 days in November.
- Golden Nugget Atlantic City, home to the Golden Nugget, Betfair, and SugarHouse online casino brands, led all licensees with $6.1 million in December gross revenue and $68.6 million in annual gross revenue.
For more information and analysis on regulated online gaming in New Jersey, visit PlayNJ.com.
About The PlayUSA Network:
The PlayUSA Network is a leading source for news, analysis, and research related to the market for regulated online gaming in the United States. With a presence in over a dozen states, PlayUSA.com and its state-focused branches (including PlayNJ.com, PlayNY.com, PlayPennsylvania.com, and PlayCA.com) produce daily original reporting, publish in-depth research, and offer player advocacy tools related to the advancement of safe, licensed, and legal online gaming options for consumers. Based in Las Vegas, The PlayUSA Network is independently owned and operated, with no affiliations to any casino — commercial, tribal, online, or otherwise.