Internet gambling hits Jersey high; Hard Rock back to Vegas

April was the worst of months and best of months for New Jersey. Sports books are estimated to have lost out on $450 million in handle while Internet casinos did better than ever, raking in $80 million. “Seeing New Jersey’s retail sportsbook handle at zero and its land-based casinos generate no revenue is jarring, laying bare just how much these shutdowns are costing the industry,” said analyst Dustin Gouker. People were still betting online but, with little to wager upon, handle was a slim $54.5 million. That’s an 82.5% plunge from this time last year. Gross revenue—a measly $2.5 million—was even worse off, down 88%. As Gouker said, “The picture for the industry is not pretty, and that will continue until sports leagues figure out a way to reopen.” FanDuel‘s $1.5 million topped the market in revenue, leaving scraps for everyone else.

On the flip side, it was a great month for the Golden Nugget, making $27.5 million in online-gambling revenue, part of a 118.5% increase from 2019. Poker was at an all-time high of $5 million. Said PlayNJ.com‘s Eric Ramsey, “Such a dramatic shift to digital gambling could permanently alter the market, even after land-based casinos open. The longer the current closures go on the higher chance there is for a more permanent shift in bettors’ preferences for digital gaming.” That’s not good news for terrestrial casino operators … unless you happen to be Tilman Fertitta. And maybe it’s not a binary choice: As one industry lobbyist says, “As data from New Jersey indicates, land-based casino revenue has actually grown since online gaming legislation was introduced.”

In Europe, where i-gaming is more deeply entrenched, online revenues were up 22%, part of a phenomenon that some think will spur a faster growth of Internet play in the United States. Both The Stars Group and BetMGM are recording off-the-charts numbers. For legislatures hard-hit by the loss of casino taxes, ‘Net betting has to suddenly look a lot more seductive. As attorney Jeff Ifrah puts it, “Even during statewide shutdowns of retail casinos, i-gaming and i-poker are bolstering tax revenues at a time when money is desperately needed to fund needed projects and programs.” Morgan Stanley analyst Thomas Allen agrees, “We believe the impact of Covid-19 could spur more states to legalize online casino and sports betting,” he wrote to investors. “Online can be at least a slight offset to lost revenues during phases of social distancing, as we are experiencing today. Layering iGaming on top of an existing mobile product will be an easier lift for state legislators who may be skeptical of expanded gambling.” Some states, like Michigan, are even fast-tracking the launch of Internet gaming that wasn’t expected until next year.

I-poker is doing better, yes, but punters are largely gravitating to staples like slots. Optimove Vice President of Marketing Amit Bivas reported “Only a small portion of customers migrated from sport betting activity to products like online casino/poker. The rest are newly acquired players, who probably wanted to spend their time while at home.” The only downside isn’t for players but the industry: Namely that legislators may kill the golden goose with usurious taxes. Warns Ifrah, “To be clear, the revenue from iGaming will not solve any state budget crisis. It needs to be looked at as one option of many that states will consider this year and in 2021.”

Jottings: Let it never be said that we didn’t have a single good word for illusionist Criss Angel. The Vegas-based performer is donating $250,000 for the care of children suffering with cancer, forgotten victims during the Coronavirus pandemic … Good news for Nacho Daddy employees. The restaurant chain has backed down from its reprehensible hold-harmless demand were workers to get sick on the job … Las Vegas Sands‘ withdrawal is described as “ominous” for casinos in Japan. Maybe it should be. They’re unpopular (casinos, not Sands), insanely expensive and Shinzo Abe‘s government can’t organize a one-horse parade … Hard Rock International is rethinking Las Vegas, having repurchased the intellectual-property rights to open a hotel-casino in Sin City. Maybe the former HRH will be a Hard Rock once again … The announcement that Boyd Gaming had sold $500 million in private-placement notes sent company stock down 7% … Employees at six Station Casinos properties will have to be tested for Covid-19 before resuming their jobs.