New Jersey and Delaware Experience Dips in Online Poker Revenue

arrowdown-300x275Online gambling figures have been released for New Jersey and Delaware for May and both states saw a decline. Online poker revenues in Delaware saw a dip for the first time since joining the interstate network, dropping 19% in May.

New Jersey iGaming saw a minor dip months over month but a significant increase in year-over-year stats. Overall revenues for the up 19.1% compared to 2014 with that gain coming entirely on the strength of casino games.

Online Poker Drops 19% in May – New Signups Jump 51%

For the first time since joining the interstate online poker network with Nevada, Delaware saw a drop in iPoker revenue. State racinos only pulling in $39,245 in May compared to $48,552 in April. This was a drop of 19% month-over-month.

There are a couple potential explanations for this trend. The first, and most obvious, is that warmer weather is hear and vacation season has begun. Online gambling typically takes a hit at the start of vacation season.

The other potential explanation is that the novelty of the combined network is beginning to wear off. Nevada and Delaware share players from WSOP.com NV and while that is certainly a boost for Nevada, the excitement behind playing internet poker may have died down.

One area of good news for Delaware is that new player registrations jumped 51% from April. In May 318 players registered for online gaming, which is the highest total since September 2014. Just 210 players signed up in April.

New Jersey Dips Slightly in May – Up Year-Over-Year

New Jersey iGaming saw a minor drop in revenue in May, down $200k from $12.7 million to $12.5 million. However, looking at historical figures, this represented a major gain over 2014.

Online gambling numbers for May 2015 were up 19.1% over 2014 thanks to a 28.7% gain in table games. Table games earned $10.5 million compared to just $8.19 million in 2014.

Unfortunately, online poker continues to be the millstone around the next of the iGaming industry in the Garden State. Online poker revenues dropped 15.2% in May 2015 compared to May 2014, pulling in just $1.93 million.

Caesars and Resorts were the only two properties to see gains in May 2015. Caesars gained $173,000 in revenue over April while Resorts saw a 50% jump in revenues. Resorts pulled in a modes $324,000 in May but continues to climb as it gains traction in the marketplace.

When Will the Bleeding Stop for iPoker?

If there is anything that can be said for May, it is that it could have been worse for online poker. Some expected losses exceeding 20% or more in May compared to 2014. The fact that it stopped at 15.2% could be indicative that the bleeding is slowing but a slow bleed is still too much for the struggling iPoker market.

Some are now beginning to wonder whether PokerStars will be able to do any more than get the industry back to par with 2014 revenue levels. While a spike in traffic is expected when the site opens shop later this year, can it really replace the 15 to 20% drops that the industry has experienced?

Industry analysts are hopeful that PokerStars’ prescience and marketing will result in overall industry growth as players realize that online poker is available and here to stay. It may not provide an immediate fix for online pokers ails in New Jersey but it could be the long-term cure the state is hoping for.