Governor Christie was a little busy at 2 p.m. ET, as he launched his annual State of the State speech amid the controversy over George Washington “Bridgegate.”
But at the same time, the state Division of Gaming Enforcement released its first-ever online gaming montly revenues (for December plus the last week of November). The figures show that the casinos took in $8.4 million in “internet gaming win,” which translates to $1.3 million in state taxes collected – below where industry analysts expect the market to go eventually, and way below Christie’s estimates.
Three gaming research studies – by Econsult in 2010, by Gambling Data Research last April, and by Eilers Research last month – each estimate gross gaming revenues either in the first year or within a few years that would generate about $3 million a month in taxes.
But Christie’s budget estimate from last spring initially was for $180 million in taxes in the first year before being revised down to $160 million.
To complicate matters even further, Christie’s estimate is for the fiscal year – which runs from July through the following June. Since online gaming didn’t debut until the end of November, that leaves only seven months of play in the fiscal year to generate the $160 million – so about $23 million in taxes per month, about eight times what independent experts expected.
BY THE NUMBERS:
- Borgata took in $3.75 million in online gross gaming revenues in Nov/Dec, for a 45 pct market share
- Caesars checked in with $2.38 million, for a 28 pct market share
- Trump Taj Mahal had $883,000, for a 11 pct market share
- Tropicana with $749,000, for 9 pct
- Trump Plaza at $428,000, for 5 pct
- Golden Nugget (which debuted Dec. 13) at $179,000, for 2 pct
STATEMENT from Geoff Freeman, the American Gaming Association’s President:
“New Jersey has responded to consumer demand for gaming entertainment in an innovative fashion — creating a safe and secure online environment with strict regulatory controls and consumer protections. More than 150,000 accounts have been created, and undergone rigorous review and approval with respect to the safety and integrity of this online marketplace since it opened in late November, 2013.
“New Jersey’s online gaming structure will likely strengthen the economic contributions brick-and-mortar casinos already deliver through job creation and increased tax revenues. The New Jersey experience is a testament to the power of effective regulation and I am optimistic the bold move into online gaming will later be viewed as a positive and pivotal time for the gaming industry, our employees and the communities we support.”
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