New Jersey Online Gambling Brief: A Joyous Week for Online Poker is Overshadowed by Atlantic City’s Continued Woes
It was the day online poker players from the Garden State have been waiting for.
Well, maybe not THE day, but the precursor to the day.
It remains unconfirmed, but it appears that PokerStars and Full Tilt will be launching operations in New Jersey at or around October 1st.
All around, it was a tremendous week for New Jersey online poker, marked by increasing revenues, spiking traffic and of course the news that the most well-respected poker brand in the industry will soon be humbling the Garden State with its monolithic presence.
But for as good things were on the iGaming front, they were equally awful in Atlantic City. Shocking, I know.
PokerStars/Full Tilt poised for an October launch date
For those who read my column on a somewhat regular basis (I applaud you for your good taste), the news that PokerStars won’t be launching in New Jersey until October may come across as a bit of a disappointment. After all, just last week I speculated via Global Gaming Business Publisher Roger Gros that Stars may hit NJ computers within a couple of weeks.
Alright, so that’s no longer the case, but the newest date that we’ve been provided with appears to be more firm.
According to sources close to Jen Newell, PokerStars and Full Tilt have received a “tentative launch date” of early Q4. Keep in mind, that the Division of Gaming Enforcement has not verified these dates, and that they are subject to change. But in either case it won’t be long before NJ players will be able to exchange their VPP points for PokerStars hoodies.
With Party / Borgata’s Garden State Super Series set to coincide with the Borgata Poker Open in early-September, followed shortly thereafter by the PokerStars / Full Tilt launch, I can say without reservation that we are entering into one of the most exciting times in NJ’s nine-month history in the iGaming biz.
Hooray!
New Jersey iGaming revenues on the upswing
After slipping below the $10 million mark in June, NJ’s iGaming would rebound in July, mostly on the merits of its online casinos.
In total, revenues were up $565,000 to $10.07 million last month, with $2.146 (21.3 percent) of that coming exclusively from peer-to-peer games (poker). Compare that to last month, when poker accounted for 21.5 percent of iGaming revenues.
On a more positive note, the state’s iPoker operations would reap 1.4 percent more in average daily revenue in July as compared to June.
Party / Borgata would watch its poker market share lead over WSOP / 888 slip further, with the former pulling in a mere $99,000 more than its closest rival ($1.110 million vs. $1.011 million).
Ultimate Poker’s precipitous decline would continue, with the network’s poker site only managing a paltry $26,043 – a 14.4 percent drop over last month.
Betfair’s poker room (yes, they still have one), generated $1, bringing its yearly revenue up to $49 – enough for dinner for four at Chipotle’s Mexican Grill.
This year to date, NJ online gaming rooms have won a total of $73,202,078, more than $10 million of which was contributed to state coffers.
For a more extensive look at the market’s July performance, Online Poker Report’s Chris Grove has been kind enough to keep a running spreadsheet.
Revel set to close September 10th…probably
Earlier this week, Revel announced that it will be ceasing operations on September 10th. The $2.4 billion mega-structure has struggled mightily since its opening in Spring 2012, twice declaring a Chapter 11 bankruptcy petition.
The casino was unable to secure a buyer in time to preserve its status.
However, a day after the closing was announced, Revel’s lawyers revealed that it was still in ongoing negotiations with “certain potential bidders.”
Interestingly enough, the results of a poll conducted on nj.com show that nearly 43 percent of voters feel Revel should remain a casino, with 22 percent believing the building would be best utilized as an apartment complex.
Personally, I don’t see much point to replacing one casino with another; at least not in the city’s current economic climate. Which brings me to my next headline.
Atlantic City gaming revenue tumbles 11 percent in July
Despite the inclusion of online gambling revenues, Atlantic City casinos brought in $25.1 million less this July compared to last.
To say at this point that Atlantic City is struggling would be the understatement of the year.
In total, the boardwalk city won $274 million from its gambling patrons – $264 million if online gambling is discounted – which amounts to an 11.1 percent year-over-year loss.
Granted, this time last year, AC boasted 12 casinos. But with the closure of the Atlantic Club Casino in January that number was brought down to 11.
That bodes poorly for next year’s prospects, when in the most likely scenario, only eight casinos will remain. Revel, Showboat and Trump Plaza are all expected to close within the next 30 days.
For a more extensive look at the financials, as reported by the DGE, click here.
Online traffic surging
After beginning the month at another low point, liquidity on NJ’s iPoker sites has rebounded nicely, with 7-day cash-game averages up just over 6 percent during the first half of August.
This, as reported by PokerFuse Pro via PokerScout.
With an average of 146 cash-game players, PartyPoker NJ continues to hold onto first place, but its lead over second place WSOP.com remains as vulnerable as ever. WSOP.com currently hosts 133 ring game grinders.
888 continues to hang around in third-place with exactly half the liquidity of Party. Although, with the lack of a attractive promotional offering, I would expect 888’s numbers to drop over the next two weeks.
