November iPoker Revenues in New Jersey Slump To $1.87M
Back in November 2013, the state of New Jersey legalized online poker and state authorities believed that the online poker industry would provide a strong revenue stream that could be used to develop the garden state.
Over a year has passed and the online poker market in New Jersey has proven to be a disaster and revenues are well below expectations. Online Gambling companies in New Jersey have found it extremely hard to survive as online poker traffic has diminished considerably and market stagnation has made it extremely difficult for online gambling establishments to survive. Ultimate Gaming and Betfair decided to shutdown online operations in New Jersey because they felt that it would take a long time for the online gambling market in New Jersey to pickup.
New Jersey gambling authorities confirmed that for Nov 2014 internet gaming revenue amounted to $8.7 million and the contribution to this amount from the online poker industry was $1,877,603. This was the lowest amount generated from the online poker industry since November 2013 and is further confirmation that the online poker industry in New Jersey is in serious decline. Online poker revenues in October 2014 were at $1,967,904 and the total revenue from the iGaming industry stood at $9.48 million.
As of now only 2 brick & mortal casino operators, Borgata and Caesars are operating online poker websites in New Jersey. These two operators run 4 online poker websites between them that generate revenue and have been successful in attracting new players. There were a total of 479,073 player accounts on the 31st of October 2014 and as of November 2014 there were a total of 506,172 player accounts, showing a spike of 5.7% in new player accounts.
In November 2013, the total revenue from the casino industry in Atlantic City was $225.7 million and that has fallen by 10.3% when measured in November 2014 to just $202.5 million. Four casinos in Atlantic City have been closed during the last 12 months and a 5th casino could also shutdown operations before the end of 2014.
New Jersey state authorities have tried a number of different strategies to revive both live casinos and the online poker industry but have faced a number of roadblocks such as Sheldon Adelson’s anti-online gambling campaign, a lack of collaboration from credit card companies and opposition against the legalization of sports betting.