2015 New Jersey Gambling Update: Online is Up, Land-Based is Down
These numbers told a story that could easily start with the words, “I’ve got some good news and I’ve got some bad news.”
On the good news front, revenue from the state’s simmering online gambling operators was up for both the month of December and 2015 as a whole.
According to the DGE, 2015 online gambling revenue was up nearly 20% over the previous year. For the month of December, Garden State gambling sites were up 6% from the previous month and a full 30.8% over the previous December.
The top earner in the NJ igaming sector was the Borgata, which pulled in nearly $4 million in online revenue. They were followed by Caesars Interactive, which pulled in around $3.1 million in December.
Unfortunately, things weren’t quite as rosy on the land-based side of the market. According to a report from the Associated Press, Atlantic City casino revenue is down nearly 50% over the last nine years. That bleeding includes a 6.5% drop in the past two years alone.
Even worse, NJ lawmakers just introduced a bill that would allow casinos in other parts of the state. That’s an absolute worst-case-scenario for a casino industry that’s relied on exclusivity over originality for the past thirty or so years.
In an interview with the AP, Atlantic City Mayor, Don Guardian spoke truthfully about his city’s ability to compete in the crowded East Coast casino market saying:
We had a monopoly and 12 casinos. Now there are 30-something casinos in the northeast, and we’re about to have gambling in the northern part of the state. There are more gambling places than there are gamblers willing to gamble.
What he’s saying is true and, barring any miracles, things will only get worse in AC.