Online gambling continues to rake in huge monthly revenues for digital operators in New Jersey.
According to the latest figures from the state Division of Gaming Enforcement, internet gaming generated nearly $142.6 million in February. The monthly total was a 6.7% decline from January’s record-setting $152.9 million but 9.7% higher than in February 2022.
Jane Bokunewicz, faculty director of the Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism (LIGHT) at Stockton University, says internet gambling is becoming a more prominent business component for the state’s gambling industry and Atlantic City casinos.
From the launch of NJ internet gambling in 2013 through February, operators have generated just shy of $5.8 billion in lifetime revenue.
“Internet gaming pushed February 2023 to new heights setting new near-term records for single month February and year-to-date February revenues. Internet gaming remains a significant portion of the Atlantic City gaming industry revenue mix accounting for nearly 40% of total gross gaming revenue share for the year-to-date.”
As a share of the total monthly gaming revenue reported by AC casino licensees, internet gaming accounted for 37.8% of the market in February.
iGaming heats up Atlantic City revenue during cold winter months
Through the first two months of 2023, internet gambling has generated just shy of $295.5 million, a 10.3% increase over the same period last year. Compared to the start of 2021, online gambling revenue is 49.5% higher this year.
Bokunewicz says gaming operators increasingly have the “ability to engage players year-round and via multiple channels.” She believes that approach “may help Atlantic City’s casino operators stay competitive in an increasingly crowded regional and local market.”
“Based on seasonal patterns seen in 2021 and 2022, internet gaming generates the highest percentage of GGR share in the first three months and last three months of the year — the inverse of in-person gaming, which peaks for revenue share in the higher traffic second and third quarters. This pattern may suggest that online casino operations, although not necessarily as lucrative for land-based operators, are successfully capturing player behavior in what is traditionally considered the ‘off’ or ‘shoulder’ season for Atlantic City.”
COVID-19 accelerated the growth of online gambling in NJ. Beginning in March 2020, AC casinos closed for months as a health precaution.
In February 2020, online gaming generated $52 million. By May, digital gambling revenue was $86 million.
Since NJ online casino revenue first eclipsed the $100-million mark in January 2021, only once (February 2021) has the market segment failed to do so again.
Running down NJ’s online gambling numbers
Borgata Hotel Casino & Spa and its online partners, including BetMGM, generated February’s highest revenue. The AC market leader reported $39.7 million last month.
Golden Nugget Atlantic City and Resorts Digital also exceeded $35 million. Golden Nugget, along with Stardust Casino and BetRivers, posted $36.5 million in revenue. Resorts Casino, Mohegan Sun Casino, Poker Stars and DraftKings Casino reported $36 million.
Collectively, those three licensees accounted for 79% of the market’s monthly total.
In terms of percentage increases, Bally’s (+340.1%) and Ocean Casino (+238.6%) led the way in February.
Here is a breakdown of the February NJ online casino revenue results by AC casino license:
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