In November 2021, the entire US casino industry had to stop for a while to pay tribute to the New Jersey market for its incredible performance. While there was no new record set, the revenue of $118 proved that the performance of the Garden State in recent months has not been by accident. Maintaining a certain range of revenue is an accomplishment for casinos especially at uncertain times.
This latest wave of profitability comes at a time when the New York state assembly across the border just gave the gamble industry a nod. This move will prevent gamblers crossing the border to bet from investing in NJ but even this does not affect the potential of the Garden State. The numbers still continue to grow precisely because new bonus and rewards products are getting unveiled into the market.
According to data provided by the New Jersey Division of Gaming Enforcement, it appears that New Jersey casinos have maintained the success trend. The performance for year-to-date currently stands at $1.2 billion which is a record by itself. Even without including the December performance, the market manages to exhibit an estimated 42% year-over-year increase.
Based on past reports and the current trend, there is no indication of slowing down for the NJ online casinos. The following pointers validate a strong performance for the rest of 2022;
What we cover
The November Revenue Ranked NJ at No.4 Countrywide
Looking back at the state’s performance for October, the $127-million collected indicated that $130-million would be achieved soon. This stemmed from the fact that there was a yearly increase and $3 million was attainable based on past performance. Even when the market attained $118-million, the result was considered to be among the lowest for the year.
An analysis of the entire year’s performance indicates that the month of November almost made it to the top three. It is clear that the months’ leading up to the end of 2021 set a new bar as far as revenue performance is concerned.
The top players, Borgata, GNOG and Resorts Digital, maintain their positions.
The New Jersey online casino market bears a clear demarcation between those who lead and those who follow. Since the legalization of the market, the operations of Resorts Digital, Golden Nugget Online Gaming and Borgata have been synonymous with pace setting. In November 2021, Borgata Casino NJ posted a performance of $33.7 million, followed by GNOG at $31.8 million then Resorts Digital with $27.9 million.
The difference between number 3 and number 4 on the performance board is what makes the difference between the leaders and the followers so evident. At number 4, Caesars Interactive posted $9.8 million in revenue. Although the casino had a 20% increase in performance during this time, they still lacked the support of a vibrant customer baseline. Caesars Interactive is expected to expand it online portfolio in 2022 and this is likely to boost revenue after they build a customer database.
It is highly unlikely that the three players at the top will be dethroned from any of these positions. Apart from the fact that they have maintained this trend for years, the NJ is rather old to be conforming to the new normal.
The Boost of the NJ Sports Betting Revenue
The discussion on New Jersey casino performance can never be complete without the mention of sports betting. In November 2021, the revenue from this subsector was reported to have been about $114.8 million. This had never been achieved before; the increase from the same period in previous year was 127%.
Industry analysts have discovered that there is a strong correlation between high performance in sports betting and level of sporting activity. For instance, on 3 out of the 5 occasions where NJ has posted high revenue, the NFL season was on. This cross-sell model is expected to carry on for the rest of the year.
The Significant Improvement Is Hard to Ignore
It is not a secret anymore; when the New Jersey casinos post results, it is usually large figures which no one can assume. In 2021, the online revenue contributed to the New Jersey overall performance. According to the lifetime chart which captures the industry’s performance from 2013, the total revenue obtained stands at $3.7 billion. In terms of casino brands breakdown, Golden Nuggets Casino NJ maintains the top position with an all-time performance of $1.1 billion, followed by Borgata which has so far achieved $904.
At number 3 is Resorts with $693.5 million and then Caesars whose performance up to November 2021 accumulated to $447.6 million.
The Growth of Bally’s AC NJ Online Casino Portfolio Is Certain
Of all the online casino brands operating in the NJ market, Bally’s Atlantic City is the newest operator. The casino’s portfolio is still very small and one of the lone skins using its approval license is PointsBet Casino. By considering this as a stepping stone onto bigger plans for the NJ casino landscape, the ownership traces back to Bally Bet. The operator’s version of the online sportsbook app is available for the bettors of Iowa, Virginia, Indiana and Colorado.
At the moment, multiple construction projects are going on in Atlantic City. The various casinos represented there are all in a rush to make up for lost time. The entertainment industry as a whole suffered low business due to unfavorable conditions occasioned by the Covid-19 pandemic.
Conclusion
The betting industry in New Jersey is a popular hub for bettors who not only want the entertainment but also to try their luck at winning. It is a collective effort led by investors who create betting stations where bettors want to spend their money. The other important group of people in this industry is the operators who make sure bettors find what they want when they walk/log in. Although casinos vary based on their operating procedures, the more diverse they are the better.
