New Jersey Casino Revenues Increase Due to iGaming
When New Jersey lawmakers set out to enact online gambling legislation, they did so to resurrect steadily declining revenue at land-based casinos.
By looking at the casino revenue numbers for the month of April released yesterday by the New Jersey Division of Gaming Enforcement (DGE), it is evident that the plan is working. Comparing last month to April of 2013, a 3% rise in gaming revenue was realized.
Casinos took in $228.5 million one year ago in April and improved on that figure last month by generating $235.9 million. That includes online gambling revenue totals.
Excluding Internet gambling, the story would have played out quite differently. Land-based gaming revenue in April was $224.4 million, which is almost a 2% decrease from April 2013 when not factoring online gambling into the equation.
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However, if one wanted to look on the negative side with regard to online gambling revenue, it could be pointed out that April was the first month that igaming revenue declined from the previous month since launching in November. In order for positive gains to be seen month-over-month, it is likely that financial institutions that remain reluctant to process credit card deposits from players to online gaming sites must acknowledge that it is perfectly legal and begin accepting those deposits at a greater frequency.
The DGE reported that new online gaming accounts opened by players during April was up more than 10% from 291,625 at the end of March to 322,423 on April 30. It is noteworthy to point out that players may open accounts at more than one gaming site.
In terms of online poker, New Jersey sites in April saw almost a 19% decrease from March. A total of $2.6 million was raked in April, while the figure was $3.2 million in March. The month of March did have 31 days on the calendar, one more than April.
Two casinos stand out among others with regard to revenue increases. The Revel Casino Hotel saw revenue skyrocket 55% to $12.5 million last month in comparison to the $8 million total in April 2013.
Golden Nugget Atlantic City enjoyed a 40% increase in April 2014, recording $13 million in revenue. During the same month last year, that total was only $9 million.
It is likely that those big gainers benefited from the closing of the Atlantic Club Casino Hotel, which was sold to Caesars and Tropicana in a bankruptcy auction last December. The casino shut its doors the following month after Tropicana employees removed all of the gaming equipment.
Trump Plaza saw the worst decline in revenue among New Jersey casinos. From $6 million in April last year to $4.4 million this year marks a 26% decrease. The Showboat was not far behind with 20% less than 2013.
Caesars CEO Gary Loveman recently stated that the company is exploring its options on whether to [geolink href=”https://www.usafriendlypokersites.com/caesars-considers-closing-new-jersey-casino/”]close one of its four Atlantic City casinos[/geolink]. Considering the Showboat’s poor performance, that may be the casino most seriously considered among Bally’s, Harrah’s and Caesars.