New Jersey iGaming saw huge financial improvements in 2016 according to the latest report from the Division of Gaming Enforcement (DGE).
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New Jersey online poker and casino revenue enjoys a 32 percent year-on-year improvement in 2016. (Image: southwesttimes.com)
Despite some inevitable dips throughout the year, online gaming revenue across the Garden State had increased by more than 32 percent at the close of 2016. Looking at the figures, last year saw the state’s five operators rake in $196,709,327 compared to $148,880,180 in 2015.
In addition to increased revenue, 2016 saw financial discrepancies between operators decrease. Back in 2015, the Borgata became the top earning operator with $45,667,287 in revenue.
That figure was just under $13 million more than its closest rival, the Tropicana, and almost $40 million more than Resorts.
This year, however, the Borgata’s lead at the top has been reduced significantly.
Although it still raked $47,015,036, the Golden Nugget finished the year just under $5 million off that total.
Not only that, but every operator in the state managed to breach the $30 million revenue barrier in 2016, including Resorts which recorded a 486.2 percent increase to $31,761,839.
The PokerStars Effect
Part of the reason for a spike in New Jersey’s overall takings, and in particular Resorts, was the launch of PokerStars NJ.
Although a newcomer to the market, the poker site has already matched WSOP/888poker NJ in terms of traffic according to PokerScout.
In fact, when you discount identical 24 hour averages, PokerStars NJ has a higher cash game peak than its closest rival.
This injection of fresh blood has not only transformed the fortune of Resorts, but the local iGaming economy as a whole. With another major player now active in the state, casual players have another reason to ante-up.
To help increase the general public’s awareness of its brand, PokerStars hosted the first New Jersey Festival between October 29 and November 6.
Although the overall attendance was lower than expected, the $1,100 Main Event did attract 208 players, including established pros such as Randy Lew, David Vamplew and Matt Affleck who all finished in the money.
Live/Online Crossovers Are Crucial
PokerStars will no doubt be looking to build on this success in 2017 and that should inspire other operators to follow suit. With Resorts and the Borgata both in a position to link their live poker provisions with their online sites, the coming months could see attendance figures improve across both mediums.
In fact, with New Jersey’s live venues experiencing a slight financial dip in 2016, cross-over events could become increasingly important. Although the presence of the Trump Taj Mahal was partly responsible for live casino revenue dropping by 0.3 percent (if this casino is excluded from the results, revenue was up by just over 2 percent), the results were still somewhat disappointing.
With such as contrast between live and online revenue across the year, it’s now clear that iGaming is becoming an increasingly important part of New Jersey’s gaming industry.
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