Bloomberg News

New Jersey Online Bets Rise 28% in January From Debut Month (1)

February 12, 2014

New Jersey’s Internet gambling revenue totaled $9.46 million in January, a 28 percent increase from December, the first full month residents and visitors could play online in the state.

Gambling in the casinos in Atlantic City fell 9.2 percent to $186.3 million from a year earlier, the state Division of Gaming Enforcement said today in a statement on its website.

The results show the advent of online betting in New Jersey has slowed, not stopped, the ongoing drop in betting for the state’s casinos, all based in Atlantic City. Six casino operators are offering online betting.

“It’s still early days in the development of the New Jersey market,” Craig Abrahams, chief financial officer of Caesars Entertainment Corp. (CZR:US)’s interactive business, said in an interview. “We’re encouraged by our results.” The company is still introducing its products for smartphones and tablet computers, he said. Poker is available now.

The state’s Internet gambling law was designed to stimulate business for its casinos, which have lost customers as neighboring jurisdictions expanded their gambling. New Jersey’s online casino operators are required to keep their hardware in Atlantic City properties.

New Jersey became the third and most-populous state to introduce online casino-style betting last year, following Nevada and Delaware. At the end of January there were 197,782 Internet gaming accounts established in New Jersey since play began on Nov. 21.

Total casino revenue, online and land-based, declined 4.6 percent to $195.7 million in January from $205.2 million in the same period a year earlier, according to today’s report.

Borgata Casino Hotel & Spa, led among the casinos presently offering online wagering, with $3.9 million in revenue or about 41 percent of the market. Borgata is owned by MGM Resorts International (MGM:US) and Boyd Gaming Corp. (BYD:US)

Caesars, based in Las Vegas, was in second place with $3 million in online revenue.

To contact the reporter on this story: Christopher Palmeri in Los Angeles at cpalmeri1@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net


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Companies Mentioned

  • CZR
    (Caesars Entertainment Corp)
    • $15.46 USD
    • 0.02
    • 0.13%
  • MGM
    (MGM Resorts International)
    • $21.11 USD
    • 0.34
    • 1.61%
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