January 2021 NJ Online Gaming Revenue Hit A Record $103.7 Million

According to the figures just released from the Division of Gaming Enforcement (DGE), January 2021 marked the first time ever that NJ online gaming revenue surpassed $100 million.

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The total internet gaming revenue for the month was $103,771,312, easily breaking the previous month’s online gaming revenue of $99,450,665. This represented an increase of 4.35 percent from December 2020 and a whopping 88.4 percent increase from January 2020, the first month that online gaming revenue exceeded $50 million.

Online gambling revenue compared to in-person Atlantic City casino revenue

Total Atlantic City casino gambling revenue, which also included in-person gambling, was also up for January 2021 compared to 2020 but only by 9.3 percent. The increase was primarily due to the extra revenue produced by online gambling and sports betting.  Without including them, Atlantic City casino revenue for January 2020 would have fallen 16.7 percent from January 2020.

The impact of COVID-19

These differences make a lot of sense given the still ongoing impact of COVID-19. From March 14 to early July, all nine Atlantic City casinos remained closed. Even after they reopened, attendance has been way down, and bad weather in January was yet another reason why many NJ online gamblers have been reluctant to make the trip. Under these circumstances, online gambling continues to provide a very convenient viable alternative.

Furthermore, although January is typically a relatively slow month in any year, in January 2020, prior to the pandemic forcing the closure of casinos across the country, the Atlantic City casinos remained open for business as usual. Unlike now, no special restrictions were imposed, and all of the restaurants, bars, and other amenities were open with no social distancing, and a full slate of top entertainment was available.

In February 2021, Gov. Murphy increased the maximum casino capacity from 25 percent to 35 percent. But what effect this will have on brick-and-mortar casino revenue remains to be seen. Permitting the casinos to operate again at 100% capacity is likely to still be months away.

The relative contribution of online poker and sports betting revenue to the total

The phenomenal increase in online gambling can be attributed largely to play on online casino games and sports betting and very little to online poker.

Online poker

During the time that the Atlantic City retail casinos were closed, play at NJ online poker rooms increased. However, online poker play has dropped quickly and sharply thereafter.

In fact, online poker revenue for January 2021 was down 9.1 percent from December 2020–$2.7 million vs. $3 million.

Sports betting

Sports betting handle (the total amount bet) but not sports betting revenue (the amount the NJ sportsbooks won from bettors) declined slightly from December. January 2021 was the first time in six months that the amount of money bet on sports failed to set a new record. The total sports betting handle for January amounted to $958.7 million, as compared to more than $996 million in December.

However, NJ sportsbooks set a new record for sports betting revenue in January. It rose from $66.4 million in December to its highest total yet of $82.6 million, for an increase of more than 24 percent.

Not surprisingly, retail sports betting contributed only 7.5 percent of the handle and only 10.3 percent of the revenue. All of the rest came from online and mobile sports betting.

Which NJ online casinos performed best?

Golden Nugget remains the No. 1 NJ casino in online gaming revenue. Golden Nugget, the long-time leader in this category, not only held onto that position, but its January total of $31.1 million meant an average of $1 million per day. It also marked a 5 percent increase over the $29.4 million reported for December.

On the other hand, in-person casino and NJ sports betting winnings reported by Golden Nugget for January only amounted to $10.1 million, a 33.2 percent decrease from January 2020.

The casinos that ranked second and third behind Golden Nugget are Borgata and Resorts, which reported $28.7 million and 22.8 million in online gambling revenue in January 2021, respectively. As reported in a Feb. 17, 2021 article, these three Atlantic City casino license holders collectively control nearly 80% of the NJ online gambling market.

Look for Borgata especially, with big player BetMGM.com making a major contribution, to close in on Golden Nugget in the months to come in what promises to be a tight race.

The following table shows the online gambling revenue for all seven license holders, listed in descending order from highest to lowest.

                                          January 2021 Internet Win By Casino