New Jersey’s online gambling market is expected to grow 17% this year, according to a recent study by research firm Eilers & Krejcik Gaming, LLC.
As noted in the report, online slots will remain the biggest winner in terms of revenue generated. Proceeds from this type of offering is expected to grow even further in 2017. However, Eilers & Krejcik Gaming predicted that revenue from online poker will slide around 6% by the end of the year.
Online poker revenue increased 15.05% in 2016 to a total of $27.21 million. The increase was attributed to the launch of a local PokerStars website. The major online poker room indeed boosted the local market but its impact is expected to weaken in 2017.
Overall, New Jersey’s Internet gambling market grew 32.1% last year to generate revenue of $196.7 million. Online poker accounted for around 14% of the whole. Online slots and digital variants of some of the most popular casino games represented the bulk. Atlantic City’s Borgata Casino was the biggest winner last year with total iGaming revenue of nearly $47 million. The gambling venue works together with online operator bwin.party, part of the larger GVC Holdings.
New Jersey regulated online gambling back in 2013. Interested offshore operators were allowed to enter the local market on the condition that they worked with Atlantic City’s casinos. New Jersey together with Nevada and Delaware are the only three US states where the provision of iGaming services is legal.
A number of states have been inching closer towards legalizing and regulating their markets, but it can be said that Pennsylvania may be the closest. A key legislator from the Keystone State has recently predicted that an online gambling law may be approved by the end of the quarter.
The legalization of iGaming offering, and online poker in particular, may benefit neighboring New Jersey, as well. According to industry insiders, the two states may venture into online poker shared liquidity negotiations, once Pennsylvania regulates its market.
Nevada and Delaware merged their player pools back in 2015 in a bid to improve profitability from this type of offering. Yet, it seems the move has not helped online poker turn into a major revenue source in both states.
Eilers & Krejcik Gaming about DFS Industry
The research firm has also recently published its predictions for the DFS industry and its likely course in 2017. According to Eilers & Krejcik Gaming, the relatively young industry will not be focusing on revenue growth this year. Its biggest players – DraftKings and FanDuel, are expected to complete their previously announced merger sometime in 2017, and they will likely direct their attention toward the deal’s finalization and the successful integration their businesses.
A number of states have rekindled efforts to legalize fantasy sports contests within their borders since the beginning of 2017. This is why it is believed that the industry will be investing a lot of effort and funds into lobbying over the next several months. DFS saw historic progress in terms of regulation last year but it still has to win the favor of bigger states like Florida and California.
Eilers & Krejcik Gaming predicted that the industry’s growth in terms of revenue will likely lag in 2017. Yet, the research firm pointed out that it is poised to grow in the years to come.
