June 2016 NJ Gaming Revenue
June 2016 NJ Gaming Revenue Results
According to the June 2016 report from the Department of Gaming Enforcement, online play is leading the NJ gaming in year to year growth for another month. Win rose over 31% from last year and remained flat from May figures. The internet gaming market is led by The Borgata with over $24M in win year to date. This represents a 6.6% increase over the prior year.
Other NJ gaming online operators have seen strong growth as well. This month, both Tropicana and Golden Nugget have seen over 10% growth from last period. Year over year growth was 39.9% and 30.6% respectively. Both Caesars Interactive and Resorts Digital both recorded lower win this month than in May of 2016. Despite having a lower June, Caesars Interactive is up year over year 19.3% year to date. Resorts Digital year to year figures are not comparative as a result of the timing of the Resorts online gaming deployment.
As for land based casino operations for the month, the downward trend for NJ gaming revenues is continuing. Win for this period was $197M vs $205M last year, same period. This represents a (3.6%) decrease over the same period last year. The year to date win is flat from 2015. The best performing casino in the market is The Borgata with nearly $56M which is flat from last year. Resorts at 9.8% and Trump Taj Majal at 13.2% were the only two casinos that showed year to year growth. All others had declines in win from last year, same period.
If the trend continues, 2016 looks like a terrific year for the online NJ gaming operators. With a consistent run rate hovering around 30%, online activities are certainly proven to be beneficial. As for the land based casinos, the year is lackluster thus far with a (3.6%) decline through June. If this trend continues, it will further exacerbate Atlantic City casino financial woes.
Recent talks of casino expansion in Northern new Jersey have raised concerns for Atlantic City casinos. The concerns center on the sustainability of the casinos in the face of increased competition. Any expansion in the North would have a detrimental effect on Atlantic City. In addition, there are concerns that online gambling has already had a negative effect on existing land-based casinos. With the ability to play anytime and anywhere in the Garden State, there is less need to travel to Atlantic City to patronize the casinos and the ancillary businesses which help support the casino and travel industry.