Part 1: Data review
to come, if not at quite the same
percentage it currently enjoys.
Section ii: The gaming market
The precedent for online sports
betting proving to be a success in
New Jersey had been established by
the booming online gaming market
established in the state at the tail
end of 2013.
Since then, online gaming has
prospered significantly. As can
be seen from the yearly revenue
figures in Chart 7, the market has
grown in gross gaming revenue
terms to be worth $289m in 2018,
providing a significant boost to the
Atlantic City casinos.
Growing at a compound annual
growth rate of just under 25% over
the past four years, it shows what
a successful online state in the US
looks like (see Table 2).
When looked at on a monthly
revenue basis, it can be seen that
apart from some seasonal variations,
the pace of growth is accelerating
(see Chart 8).
As can be seen, it is the casino
business which is the driver of
the gaming market, with poker
struggling to remain at all relevant.
We will discuss the fate of online
poker later in this report.
The cross-sell effect
These figures are impressive but the
indications from the eight months
of sports betting operations, and
Table 2: New Jersey gaming revenue by year 2013-2018
Year Total casino
gaming revenue
($m) Total poker
revenue
($m) Total online
gaming revenue
($m)
Total online
YoY increase
($m) Total online
YoY increase
(%)
2013 5.2 3.2 8.4
2014 93.8 29.1 122.9
2015 125.1 23.8 148.9 26 21.2
2016 170.2 26.5 196.7 47.8 32.1
2017 221.3 24.3 245.6 48.9 24.9
2018 277.3 21.4 298.7 53.1 21.6
Source: NJDGE
Table 3: Online gaming market shares 2018
Casino
market
share (%) Poker
market
share (%) Overall
market
share (%)
Operator Brands Borgata Borgata, PartyPoker, PalaCasino, playMGM 17.5% 26.5% 18.1%
Caesars
Interactive Harrahs, WSOP, 888, Caesars 13.6% 36.2% 15.3%
Tropicana Tropicana, Virgin 14.8% - 13.7%
Golden Nugget Golden Nugget, Betfair, SugarHouse 37.8% - 35.1%
Resorts Resorts Casino, Mohegan Sun, PokerStars, DraftKings 13.5% 37.3% 15.2%
Hard Rock Hard Rock Casino 1.8% - 1.7%
Ocean Resort Ocean Resort Casino 1.0% - 0.9%
Source: NJDGE
10
New Jersey: data and lessons from the first five years of the US’ leading digital market