New Jersey April Online Gambling Surge YOY to Receive Boost by SCOTUS Decision

The upswing trend continues for the New Jersey gambling operators eying Internet gaming as a boost to their land-based business in Atlantic City. After the record-setting haul of $25.6 million posted in March, online gaming revenue was down but continued to surge year-on-year in April reaching $23 million, according to the latest statistics released Monday. With yesterday’s decision of the Supreme Court in favor of New Jersey, the state is likely to enter the legalized sports betting market very soon, which will certainly improve both the business environment and online revenues.

April was a strong month for Atlantic City online casinos as their revenue increased by more than $1 million compared to the same period last year. This is a rise of 10.6 per cent compared to the $20.8 million generated in April 2017, according to the official report by the New Jersey Division of Gaming Enforcement. Released Monday, the figures also reveal that April’s $23 million fell short of $25.6 million revenue record set last month. Historically, however, March has always been the strongest month of the year for the business, which means that the 10 percent month-over-month decline was expected. More importantly, April 2018 was the second-best month for the industry and a clear sign of the positive trend in New Jersey online gambling.

The growth in Internet gaming revenue is, in fact, one of the driving forces behind the increase in the total gaming win for April which is $214.4 million compared to $211.6 million for the same period last year. This means the rise is 1.3 per cent, a modest surge which is at the same time showing the relatively stable gambling market. Casinos posted $136.5 million in revenue from slot machines last month, a decline from the $148.5 million in April 2017. There was an increased table gaming revenue that reached $54.9 million, up 11.4 per cent from $49.2 million last year.

Another decrease can be seen in the online poker segment (referred to as peer-to-peer gaming), where revenue was down 10.5 per cent year-on-year. In April 2018, online poker operations generated $1.76 million in revenues compared to $1.96 million that was won during the same period in 2017. While online poker is slowly but gradually going down, online casino revenue is growing strong – the report reveals a year-on-year increase of 12.75 per cent to $21.2 million last month. All this contributes to a stronger total online gambling revenue in April of a little over $23 million, or 10.55 per cent up from April 2017.

SCOTUS Decision on Sports Betting Expected to Boost Online Gambling Revenues

In a historic decision on Monday, the Supreme Court of the United States overturned the federal ban on sports betting. Known as PASPA, the 1992 Professional and Amateur Sports Protection Act did not allow states to legalize sports wagering. Ruling in favor of New Jersey, the SCOTUS effectively says that this act is unconstitutional and that now states, including New Jersey, have the option to legalize and offer sports betting. It is still not clear when Atlantic City gambling operators will launch sports betting offerings, but it is possible that this can happen by the end of the month.

Once state legislators and the Division of Gaming Enforcement shape the legal and regulatory framework, casino operators in New Jersey are likely to be among the first ones in the race for developing and offering sports betting products to the American customers. Considering the fact that it was New Jersey that led the fight against the federal ban on sports wagering, it should be the most prepared for the new opportunities that come with this entirely new market. Some analysts expect that once launched, sports betting would not only boost online gambling revenues in New Jersey and beyond. Eventually, it may account for the larger portion of the operators’ revenues from Internet gambling.

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