Posts Tagged ‘nevada’

New Jersey Reports Online Gambling Revenue

Tuesday, January 28th, 2014

In the Garden State, online casino wagering has generated nearly 8.4 million dollars since its Thanksgiving Weekend debut. Of the handful of US states with regulated online gambling activity, New Jersey has the most residents living within in its borders, and this revenue result covers about 6 weeks of wagering online.

Of the specific $8.37 million raised from the online casino sites in the state, Borgata Hotel Casino and Spa and Caesars Entertainment Corp, were the top earners.

According to the New Jersey Division of Gaming Enforcement,  Borgata came in on top, generating about $3.3 million in casino winnings during December and a total of $3.75 million year to date. In other words, the last 6 days of November (when gambling online commenced) generated about $400,000 for the casino. Caesars came in a very close 2nd, earning a little over $2 million for December and a little over $2.3 million year to date for 2013.

New Jersey became the third state to permit internet wagering on casino games for real money on November 25th after a few days of soft play. As we see the initial numbers reported, it is clear that the predicted revenue is about on track with predictions.

In the entire country, online gambling is expected to become a $7.4 billion business by the year 2017.

While these newly reported New Jersey online betting figures reflect results of only 6 weeks, an impressive 126,000 accounts were opened by players during this short period of time. About 25,000 additional accounts have been reported in the New Year so far.

At the time of legalization in New Jersey (March, 2012), Governor Chris Christie predicted some $1.2 billion in online casino revenue would be generated for fiscal 2014. This would create $180 million in tax revenue for the beleaguered casino state. Bloomberg Industries believes the number will be much higher at around $425 million in tax revenue for the state, which would amount to nearly 83% of total online gambling revenue in the US for 2014.

We are still waiting to hear the news regarding gambling revenue from Nevada’s internet activity, in which the only form of activity allowed is online poker. It is believed that revenue reports will commence once the state reaches three active casino sites online.At this time, Nevada has only two sites live taking real money wagers on poker: Station Casinos Inc.’s Ultimate Poker which launched at the end of April 2013 and Caesars’ poker site.

Delaware, which went live right before New Jersey on Halloween 2013 to try to establish clients before they went to neighboring New Jersey, is set to announce its revenue shortly. Considered a direct (location) competitor with nearby New Jersey, the small state has about 4,300 registered online casino player accounts. Around $10.3 million in total wagers have reportedly taken place, but no word on actual player results subsequently generating casino and state revenue from this number yet.

Interestingly enough, each state that has regulated online gambling has a different focus and agenda for allowing gambling online. Nevada, being the number one gambling destination in the US, has only allowed poker – and for various reasons – hasn’t launched many sites as it is not as eager to provide online casino gambling due to continued physical tourism success. New Jersey – the more desperate state with its casinos losing millions over the past years – has launched the most sites and created the largest scene. Yet, in the US, it has neighboring states like Delaware that are highly motivated by local competition to go live.

Eight New Jersey casinos are licensed to offer online betting and thirteen sites are currently live in New Jersey. Stay tuned for additional results.