The state of New Jersey appears to be nearing $1b in online gaming revenues, with the possibility to reach this milestone by the end of the year.
Since 2013, the state of New Jersey has offered gamblers the opportunity to enjoy online casino and poker games. In those few years of operation, online gaming revenues have continued to increase, with the state set to reach the $1b mark hopefully by the end of the year. As 2018 began, the state had already earned over $723m and is showing no signs of slowing down.
The first of 2018
During the first five months of this year, operators providing online gaming options were able to generate over $116m in online casino revenues. At this pace, the state could earn as much as $287m for the year. This would push them into the $1b range overall. If the state continues to see the amount of earnings they are generating, then the $1b mark will be reached by December.
Growth over the past few years has slowed, but the state continues to earn nice numbers when it comes to revenue profits. This year, New Jersey is on pace to see 15% growth.t his is the second year that the percent would decline, but still the industry is booming. The industry continues to grow in double digits every month.
Sports Betting Contribution
While online gaming earnings are on track to reach the major milestone by the end of the year, that number could be reached much faster if sports betting comes in to play. Sports betting is now a reality in the state and if the revenues earned are factored in to online gaming, the $1b mark is within reach.
Online sportsbooks will be operational in a month and the New Jersey Division of Gaming Enforcement has stated that the revenues from sports wagering licensees will be broken out like what is done for the land-based casino and online gaming operators.
By July, the state could be offering online sports betting and the revenues would be considered under online gaming of the state, added to online poker and casino earnings. There is no doubt that the first few months of online sports betting operations will be massive by way of wagers. Players are sure to come from the state and neighboring states to take part.
It will take some time for sports betting operators to get their platforms launched and fully-operational, but one could expect the books to be running by the NFL season. This would mean massive contributions to the online earnings of the state. September to December will be months to watch in the state as sports betting gets started.
Estimates have revealed that 2018 will see sports betting bringing in $20 million to $40 million for the state. If these numbers are correct, then the online gambling industry for New Jersey would generate just over $300 million for 2018, which easily reaches the $1b lifetime mark.
It will be interesting to watch in the coming weeks as sports betting gets started, as to how the new industry will contribute to online gaming revenues. It is unclear as to which operators will be offering sports betting and who will be the front runner.
Currently, the Golden Nugget holds the top spot for online gaming earnings and if they get in on the sports betting action, they would only increase their bottom line. For months now, the operator has been able to reach the $8m mark each month. With sports betting, they have the potential to earn even more. However, they may also see more competition as other operators will begin to offer online gaming as well.