New Jersey online gaming market to hit $370m by 2018 – report
Gambling industry data provider H2 Gambling Capital has reported that despite a slow start for New Jersey’s online gaming market, it still has the potential to achieve a gross win of US$370m (€271.3m) by 2018.
In the first of a series of executive market report packages, H2 said that even though the US state’s regulated online gaming market had failed to achieve its potential so far, it is contributing to stabilising the state’s gaming market.
The New Jersey land-based gaming market has been in decline since 2006 but the regulation of online casino and poker in November last year was expected to help boost the state’s gaming market.
H2 forecast that total state gambling revenue will increase from US$4.2bn in 2013 to US$4.4bn by 2018.
Commercial casinos account for the vast majority of New Jersey gambling activity with 69% of all gross win, but the state lottery (28%), horse race betting (2%) and charitable gaming (1%) are also in operation.
The report also forecast that spend per adult on interactive gaming will increase from low double digits to high double digits over the next five years.
However, due to structural changes in the number of products, total gambling spend per adult is expected to fall from US$313 in 2013 to around US$216 by 2018.
The report also noted that while the onshore licensed interactive gambling market is progressing, it is believed that there is still a strong offshore unlicensed market, particularly catering for the higher end sports betting and casino markets – a pattern that is still seen across most of the US.
In addition, H2 also highlighted Amaya Gaming’s recent acquisition of PokerStars and what this could mean for the state.
The report stated: “The recent acquisition of Rational Group by Amaya Gaming could be a catalyst for further growth in the state should the company be awarded a license though there are a number of hurdles to overcome before this can happen.”
The Executive Market Report Packages are available as part of the H2 subscription service or as stand alone reports, more information can be obtained by emailing: email@example.com
H2 Gambling Capital is the leading source of data to the global gambling industry.
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