New Report Predicts Slowed Growth for NJ Online Gambling in 2017
Published February 11, 2017 by Elana K
A new report on New Jersey’s online gambling industry has predicted a small increase in overall revenue in 2017, a decrease in online poker revenue, and describes how online gambling in New York and Pennsylvania could boost New Jersey’s numbers.
A new report on New Jersey’s online gambling industry has predicted a small increase in overall revenue in 2017, a decrease in online poker revenue, and describes how online gambling in New York and Pennsylvania could boost New Jersey’s numbers.
2017 Predictions
New Jersey’s online gambling enterprise closed out 2016 on a high note - with a record-breaking $196.7 million, a 32 percent annual increase. Gaming analysts Adam Krejcik and Chris Grove from Eilers and Krejcik Gaming, an independent gaming firm, are predicting that the industry will continue to grow in 2017, but only by 17 percent, something of a disappointment after a record-breaking year.
The growth factor has taken into account an estimated 6 percent decrease in online poker earnings, which even in 2016, was showing poorer numbers than New Jersey’s online casino offerings. According to the report, online poker is in a quandary, since there are already 7 million people playing, and not much more of an audience.
Krejcik and Grove pointed out that the overall increase in online gaming has not come at the expense of brick-and-mortar casinos as Atlantic City casinos had feared; quite the opposite, in fact. Atlantic City casinos have benefited hand-in-hand with online casinos. Krejcik and Grove wrote, "Increased integration between the online and live casino appears to be driving additional play and visitation at land-based properties."
Neighbors with Benefits
Krejcik and Grove noted the potential benefits for New Jersey should New York and Pennsylvania move ahead with legalizing online gambling. If this happens, they wrote, New Jersey could enter into a multi-state agreement with the two states, which would create a much larger, more fluid gambling audience. And much like the Powerball revenue increased exponentially when it opened itself up to dozens of states, New Jersey’s revenue could also increase exponentially when partnered with other states. Another reason for optimism: should New York and Pennsylvania legalize online gambling, it might help the suffering online poker industry, which thrives on player-to-player interaction.
