New Jersey Online Poker Boosts Atlantic City’s Bottom Line

Posted on October 17th, 2016 by Daniel Ryder
New Jersey online poker revenue

PokerStars is leading the New Jersey online poker market in terms of revenue, and overall internet gaming revenues are playing an important role in Atlantic City’s economic health. (Image: pokerstars.com)

New Jersey online poker and internet gambling continues to provide substantial benefits to the overall health of the casino industry in Atlantic City, and that was once again the case in September.

Online peer-to-peer games, aka poker, totaled $2,016,919 last month, which equates to a 13.9 percent increase on September 2015. Total internet gaming win came in at $16.23 million, an incredible 35 percent jump year-over-year.

The New Jersey Division of Gaming Enforcement (DGE) supplies revenue reports.

However, land-based casinos struggled during the month thanks largely to a hurricane threat, state of emergency, and the announcement of the October closing of the Trump Taj Mahal. Revenue inside the then-eight remaining brick-and-mortar casinos slid 3.5 percent to $210.4 million, while the Trump Taj collected just $8.1 million, a more than 51 percent loss.

But thanks to online gambling’s strong performance, collectively gambling in New Jersey was down just 1.5 percent.

Party at PokerStars

Since its entrance into the Garden State interactive poker market in March, Amaya’s PokerStars, which operates through Resorts, has wrestled with Borgata’s partypoker and Caesars’ World Series of Poker/888 platforms to take control of New Jersey.

According to the latest traffic figures supplied by PokerScout.com, PokerStars currently has a slight edge. The most recent seven-day average has PokerStars with 110 cash players to WSOP/888 at 100 and partypoker at 75.

In terms of revenue, PokerStars is the big stack. The DGE filing shows Resorts posting $744,045 in online poker rake and fee. That outpaces Caesars at $641,398 and Borgata at $631,476.

All Parties Dealt In

In terms of land-based revenue, the Borgata continues to dominate the gambling market in Atlantic City. The Marina District casino was responsible for $64.3 million of the state’s overall gross gaming revenue at physical casinos, or 30.5 percent.

Online, however, revenues are more evenly dispersed.

September Internet Gaming Win

  • Golden Nugget $3.66 million
  • Borgata $3.39 million
  • Caesars $3.24 million
  • Tropicana $3.04 million
  • Resorts $2.91 million

Folding on Amaya

Amaya is currently the subject of a potential reverse takeover by UK bookmaking behemoth William Hill. But the London-based company’s largest shareholder, Parvus Asset Management, says William Hill shouldn’t buy into Amaya.

The hedge fund, which owns over 14 percent of William Hill, told Reuters, “It shouldn’t take more than five minutes of the board’s time to realize this deal doesn’t pass the smell test. Effectively, you’re buying an overvalued asset using an undervalued currency,” Parvus said of the weakening Canadian dollar.

“We strongly encourage that the board and management stops wasting valuable time and shareholder resources pursuing this value-destroying deal,” Parvus declared.

William Hill responded to its largest shareholder by saying it was too early to draw conclusions on the incomplete takeover talks.

Parvus’ opinion won’t be taken lightly, as the hedge fund’s stake in William Hill is worth about $460 million.

Another concern for William Hill and other potential bidders is Amaya’s founder and former CEO Davis Baazov. The gambling executive is defending his name against allegations made by Quebec’s financial securities regulator that he participated in an insider trading scheme ahead of Amaya’s takeover of PokerStars in 2014.

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