Online Gaming Revenues Drop Dramatically in Delaware
The 2017 revenue numbers for online gaming in Delaware have dropped dramatically from 2016, with a double-digit decline.
Online gambling in the United States is restricted to only a select few areas as only Delaware, New Jersey and Nevada currently provide online casino and/or poker gaming. Pennsylvania approved legislation last year to get started in the industry, but have yet to begin to offer services. The first three states mentioned have been providing online gaming since 2013, with New Jersey being the most successful. For the past few years, Delaware has fought to gain a foothold with online gaming and 2017 was not a year to remember. After revenue numbers have been posted, the state has experienced a double-digit drop when compared to 2016.
18% Loss in 2017
The Delaware Lottery released the 2017 revenue figures earlier this week and the three gaming operators have only been able to bring in a little under $2.4 million for the year. The operators offering online gaming services includes Harrington Raceway, Dover Downs and Delaware Park. This amount is far under 2016 totals, with a drop of 18%.
The state has struggled for years to be able to see significant numbers from casino and poker gaming. Over the years, the small population of the state has seen only five and six figure earnings for each month of the year. The state even partnered with Nevada some time ago to be able to share online poker pools to try and see more revenues, but the impact was not as positive as expected.
Breaking Down the Numbers
The majority of the online gaming earnings for the state game from video lottery games, essentially slot machines. The earnings from 2017 were $1.57 million. This amount is around 10% less than the $1.75 million earned in 2016. Table games were down 28% from 2016, earning less than $559,000, a far cry from the $777,000 from the previous year.
When it comes to online poker, the earnings are even worse. For the year, online poker earned just $231,000. This is 38% less than the $376,000 from 2016. The online poker industry needs more players and if the state can ever get in on pool liquidity with New Jersey, the numbers will hopefully go up. New Jersey has a large online poker market and would definitely help to boost both Nevada and Delware’s earnings, if they can ever get the sharing plan off the ground.
Comparing to New Jersey
The most successful online gambling industry in the US can be found in the state of New Jersey. When comparing to Delaware’s totals, it is amazing to see the difference. Of course, Delaware has only three operators and a much smaller population when compared to New Jersey so that does have an impact on the overall numbers. Tons of operators are available in New Jersey with players having a nice selection of casino and poker gaming sites available online in the state.
For 2017, New Jersey was able to earn $245 million from their online gaming offerings. This is a massive amount when compared to the $2.4 million earned in Delaware. New Jersey is also continuing to expand, with two new casinos set to open this year, which will only help to increase the earnings of the state. The Hard Rock Hotel & Casino Atlantic City is set to open soon, and the Revel was recently purchased and will be renamed and open by the summer. With these two new additions, New Jersey will only be setting themselves up for further success.
For Delaware, something must be done to enhance their gambling industry. Perhaps more promotions or upgrades to the online gaming options available in the state would be an answer. On a positive note, the sports betting industry seems to be doing well for the state. Numbers have not been released yet, but it seems Delaware is operating at a higher level than in 2016 and should see an increase in yoy totals.