It’s been four years since the first legal NJ online casinos and poker sites went live. The industry, often described as a disappointment in its first couple years, has now seen revenue climb to levels that match what proponents were touting before the law was passed, causing significant disruption to the decade-long downward trend in Atlantic City.
The last twelve months have been nothing but a rousing success, at least on the casino side.
Below are 5 predictions for year 5.
New Jersey online poker has often been a disappointment, largely due to the small size of the market. NJ has always needed more states to share its poker networks, and that wish is finally coming true in 2018. It’s possible Pennsylvania, which recently passed online gambling legislation, will also pool its players with NJ sites, vastly upping the potential of Garden State poker sites.
So my first prediction is the easiest one. NJ online poker will start to grow again, thanks to the interstate agreement and increased marketing based on the potential to add Pennsylvania players.
Golden Nugget online casino, along with its license partners Betfair and SugarHouse, has pulled away substantially as the top-earning licensee in New Jersey. They’ve pulled this off largely by getting ahead of the competition in terms of game offerings. They’re still the only casino in the Garden State with a live dealer studio, which they share with Betfair.
Despite not having ton of local brand equity or a B&M customer database on par with Borgata, Caesar’s or even Resorts, Golden Nugget is the clear top NJ brand in the online arena.
If Golden Nugget chooses to get involved in Pennsylvania, the live dealer studio could be an advantage going in, assuming interstate cooperation is allowed. All the more reason to try to further grow their lead.
Betfair was the first heavily sports-focused online brand to become part of the New Jersey market, as fellow international operators 888, Party and PokerStars are better known for their success in other verticals.
With sports betting legalization a possibility in the near future, major European sportsbook brands like Ladbrokes, William Hill and Unibet could be looking to gain a presence in the state. William Hill, in particular, already has a substantial US presence and would be the most likely to quickly get involved.
PlaySugarHouse casino, which has created its own unique path to success in New Jersey, has more reason than ever to ramp up their online operation.
With Pennsylvania online casinos expected live around mid-year, SugarHouse parent Rush Street Interactive is in perhaps the best position of anyone to take the lead in that new market. In addition to being one of only three Pennsylvania B&M casinos – the others being Harrah’s and Mohegan Sun – to already have their brands online in New Jersey, Rush Street has the unique advantage of having casinos in both of Pennsylvania’s major metropolitan areas.
As online casino and poker become more integrated between states that have legalized, expect SugarHouse to up their marketing spending and game development to try and make a run at their top competition in New Jersey.
This one is more for later in the year, but most industry folks expect Hard Rock International, which plans to reopen the defunct Trump Taj Mahal in 2018, to come online in the state soon after reopening the property.
Still best known for their ubiquitous restaurants in major cities around the world, Hard Rock has gradually become a major casino brand over the last decade or so. They’ve built up an experienced staff of online gaming industry veterans to go with their stellar B&M team.
Poker players, in particular, would surely be pleased to see new competition from a company that’s able to pull off $10 million guaranteed tournaments at their Florida properties. This brand would have a real shot in the NJ online casino market and beyond.
NJ online casinos and poker sites had by far their best year yet, and the next year is full of promise. Whether it’s new brands entering the market, growth due to interstate compacting or marketing aggression by existing brands, the next year’s developments should be part of a bigger story of overall growth in the Garden State in the industry’s fifth year.