Report in New Jersey Reveals that Casinos with Online Operations Fare Better than Those that Don't
Perhaps New Jersey should give Sheldon Adelson a call and inform him of the news, as this billionaire has been adamantly against online gambling. It turns out that casinos in New Jersey with a connected online presence are actually doing better than those without one.
The quarter four financial reports for New Jersey's regulated online casino and poker sites were recently released, and these figures surprised quite a few people. Although the US iGaming industry hasn't boomed as much as expected by the Garden State regulators, there has been a noticeable increase in revenue over the past three months.
The Golden Nugget in Atlantic City enjoyed the biggest bump, with a 50.4% increase in net revenue. The Tropicana Hotel and Casino also profited from having an online presence, raking in $46,306,000 in net revenue during the final three months of 2014, compared to $30,793,000 in 2013, amounting to a 33.8% gain.
Nevertheless, the Borgata continues to lead the pack in terms of pure profit, but it didn't quite match its peers' growth during the last quarter.
A Promising Picture
In total, Atlantic City's casinos' net revenue increased by 12% in the final three months of 2014. The most notable result from these returns was the impact of online gaming. While the vast majority of Atlantic City's active operators experienced growth at the close of 2014, it was those with internet gambling that saw the most significant improvements.
The only casino in Atlantic City that didn't benefit from online gaming was Resorts, as it only recently opened an online platform here. Apart from the Borgata, none of the existing casino operators, including Bally's, Caesars, or Harrah's, could outpace its 14% growth.
Moreover, the net revenue figures from the Borgata, Golden Nugget, and Tropicana suggest that online gaming contributed to improved overall performances for Atlantic City's casinos in 2014.
New Jersey's Land-Based Casinos with Online Presence:
- Borgata: 6.1% increase
- Golden Nugget: 36.4% increase
- Tropicana: 24% increase
- Trump Taj Mahal: 17.7% decrease
New Jersey's Land-Based Casinos without Online Presence:
- Bally's AC: 10.9% decrease
- Caesars: 4.3% decrease
- Harrah's Resorts: 0.6% increase
- Resorts: 10.1% increase
Though it's too early to say that online gaming is solely responsible for the difference in results, the numbers do seem to insinuate that casinos with interest in the internet are already starting to reap the benefits of their investments.
It's evident that iGaming is still in its infancy in New Jersey, but there are some promising signs that can be drawn from these financial returns.
Ahead of the Curve
However, things aren't quite as toothsome in other parts of the country.
Delaware's licensed casinos reported a 14% decrease in net revenue in February 2015 in comparison to 2014. Despite the state's operators taking in more money in February than in January, the most recent results were still below those of the previous year.
Fortunately for Delaware, they have recently enacted a liquidity sharing agreement with Nevada, which is projected to boost their earnings. In fact, preliminary data shows an initial jump in traffic.
Even though the numbers have since leveled off, it appears to be the case that the convergence of player pools may be the best way to ensure growth in iGaming across the two states, as well as similar markets in the USA as more of them start to regulate themselves.
An Optimistic Outlook
Take a look at the graph above to witness this first-hand. Nevada's and Delaware's liquidity-sharing partnership went live on the 4th of March, with players from both states now able to compete against each other.
If you'll observe, there's been a small bump in revenue between the second and third quarters of 2014, most likely due to this partnership. It's hard to say if this growth will continue, but it's clear that connecting different states can have a positive effect on the online gambling market.
New Jersey's performance should give other regions some cause for optimism. As more and more states regulate and legalize iGaming, there's a real possibility we'll witness continued growth within this industry. Who would've thought that the Garden State would serve as a trailblazer for online gambling?
Read also:
- Trump plans to recruit Musk for his administration.
- Controversy erupts in Budapest gambling venue
- NRW's GlüStV to Hold Hearing
- China prohibits gambling-related material.
Source:
