New Jersey’s dominance
Nevada allows betting on poker online. Delaware allows betting on table games, video lottery, and poker online. New Jersey allows casino games and poker online.
Currently, New Jersey dominates the online gaming market. About 90% of the total U.S. online gaming revenue is derived from the state. Wynn Resorts (WYNN) was approved to offer online gambling in New Jersey this year. Last month, MGM Resorts (MGM) qualified for a casino gaming license. It obtained a license from the New Jersey Casino Control Commission.
Nationally, poker represents about one-third of the total online gaming winnings. In Nevada, interactive poker represents ~9% of the state’s casinos’ total poker win. In New Jersey, online gaming accounts for ~5% of total gaming revenue.
The above chart shows the breakdown of total online gaming wins by poker and banked games for New Jersey, Nevada, and Delaware. Players bet directly against the house. It shows that the online gaming in the U.S. is ~$11 to 12 million per month.
Eight months into the year, Atlantic City land casinos’ total year-to-date (or YTD) revenue is $1.85 billion—down 6.3% compared to the same period last year. However, Internet gaming revenues grew by ~$500,000 in August 2014 on a month-over-month (or MoM) basis.
Caesars Entertainment (CZR) is one of the major casino operators in Atlantic City. Exchange-traded funds (or ETFs) like the Consumer Discretionary Select Sector SPDR Fund (XLY) and the VanEck Vectors Gaming (BJK) provide overall exposure to the casino companies.
Analysts believe that as the northern hemisphere experiences the winter season, demand for online casino gaming will increase. Also, technical improvements in payment processing and increased awareness through advertising and promotions will have a positive impact on the online gambling market in the U.S.
In the next part of the series, we’ll discuss the future prospects of the online gambling market in the U.S.