Borgata takes 39% share of New Jersey online gaming market in Q1

New Jersey's regulated online gaming market generated gross gaming revenue of $31.6m for the first quarter of 2014, with revenue for March climbing 15 per cent versus the previous month to $11.9m.

Borgata and Caesars continue to dominate the market, according to figures released Monday by the New Jersey Division of Gaming Enforcement (DGE), accounting for a combined 68 per cent of total revenue.
 
This is down from a 72 per cent share in February however, with the strongest month-on-month growth recorded by Golden Nugget and Tropicana.

March 2014 Gross Gaming Revenue

Borgata and its online partner bwin.party continue to lead the market, accounting for 37 per cent of total revenue, followed by Caesars Interactive with 31 per cent. Borgata’s revenue rose 8 per cent month-on-month to $4.4m, while revenue from Caesars climbed 11 per cent to $3.7m.

The strongest performance came from Golden Nugget however which saw revenue increase 47 per cent to $0.7m, although it holds less than 6 per cent share of the market.

Tropicana also performed well with revenue up 41 per cent $1.9m for a 16 per cent share of the market, while Trump Plaza and Trump Taj Mahal saw revenue increase by 3 per cent and 16 per cent respectively to $0.5m and $0.7m.

As of March 31st, 291,625 internet gaming accounts have been created since the beginning of soft play last November, up 17 per cent compared to the end of February.

The DGE also provided a revenue breakdown of its regulated products, with peer-to-peer online poker accounting for 27 per cent of the total market ($3.2m). Borgata leads this segment with a 51 per cent share, followed by Caesars with 46 per cent. Trump Taj Mahal represented 3 per cent, with a minimal contribution from Trump Plaza. Golden Nugget and Tropicana are yet to launch online poker.

Other authorised games, including online slots, generated $8.7m in revenue during March. The Borgata and Caesars again dominated this segment with a combined 58 per cent share of the total. Tropicana accounted for a 22 per cent share with none of the other three licensees holding more than an 8 per cent share.

Commenting on the results, Boyd Gaming chief executive Keith Smith said that having been a leader in the land-based gaming market for more than a decade, the Borgata is “cementing” its position as the state's online gaming leader as well.

“We continue to see solid growth in online casino gaming, and are working to further strengthen our poker business,” said Smith. “Expanding payment processing options for our customers is one of our highest priorities, and we are making good progress in this regard.”

Earlier this month, Borgata added online payment solution Neteller as a new payment option for its customers.  

“Boyd Gaming is working diligently to make our online gaming experience as convenient as possible, giving players another reason to continue selecting Borgata over the competition,” continued Smith. “With the successful performance of our market-leading product in New Jersey, Boyd Gaming is well-positioned for similar success elsewhere in the country, as additional states move forward with online gaming.”

Later this month, the Borgata will hold the $600,000 New Jersey Championship of Online Poker, the largest online poker tournament in the state to date. Borgata’s online players can also qualify for a spot in the $5m WPT World Championship, scheduled to be held at the Borgata between April 21st and 26th.

For the first quarter of 2014, New Jersey's regulated online gaming market generated total gross gaming revenue of $31.6m, with online poker accounting for 31 per cent of the total. The Borgata held a 39 per cent share of the market, followed by Caesars with 32 per cent and Tropicana with 13 per cent.

Shares in Boyd Gaming Corporation (Co. Data) (NYSE:BYD) closed in New York at $12.00 per share, while shares in bwin.party digital entertainment (Co. Data) (LSE:BPTY) were trading cent down marginally 0.57 per cent in London this morning at 122.40 pence per share.

Caesars Acquisition Co. (NASDAQ:CACQ) closed down 2.46 per cent at $12.71 per share in New York, while 888 Holdings (Co. Data) (LSE:888) was up 1.58 per cent in London this morning at 148.10 pence per share.

GameAccount Network (Co. Data) (LSE:GAME), which supplies software to Trump Plaza, was trading in London early Tuesday down 2.53 per cent at 113.06 pence per share, having hit a post-IPO low of 112.00 pence yesterday.