New Jersey & Michigan iGaming revenues hit new highs in September 2021 - but did the record numbers come at the expense of land-based casinos? And which casinos now enjoy the biggest market share?
Michigan iGaming revenues in Michigan topped $100m for the first time in September, with the online casino vertical raking in $102m. It was a similar story in New Jersey, with record revenues of £122.6m for the month (up 40% YoY, and 5% from July).
In MI, BetMGM remains the leader, with a 39.7% share. That is more than double the pairing of DraftKings and Golden Nugget (which merged in the summer) with 19.7%. The FanDuel/Fox/TSG brands came third with 17.9%, while Rush Street’s BetRivers brand came in with just 6.5% market share. The remainder of the MI online casino market share was taken up by the likes of Caesars, Twinspires, and WynnBET.
It was a roughly similar story in NJ, with Borgata/BetMGM (31.2%) on top, followed by Golden Nugget (25.3%) and Resorts Digital (which DraftKings operates in this state) on 23.2%.
The top 3 in both states remained the same between 2020 and 2021.
In September, Golden Nugget Online Gaming (GNOG) became the first online casino brand to achieve $1bn in lifetime revenue from the state of New Jersey. With such a strong brand, you can now see why DraftKings were so eager to snap up Tilman Fertitta's online business in the summer.
Not in NJ, for sure. In fact, land-based casinos in the Garden State also enjoyed a record month of $248.5m in September – up 30.4% year on year.
September saw the resumption of the NFL, America’s favorite sports league to watch and to bet on. As would be expected, online sports betting saw an immediate resurgence after a slow summer. Michigan’s revenue numbers on sports almost doubled from $192m in August to $354m in September, and NJ’s numbers jumped from $612m to $918m.
In New Jersey, the online sports betting market is now ten times larger than the retail channel – with revenues of $918m against $93m. Overall, NJ sports betting in 2021 has passed the $1bn mark, earlier than ever before.
Interestingly, gross margins were on the modest side – just 6.4% for the month of September, against 7.4% for the year overall. Perhaps gamblers may have been reasonably successful at accurately handicapping the NFL in the early part of the season. But perhaps the tough competition in New Jersey for online sports betting fans has seen more and more bookmakers "reduce the juice" in search of market share. We have seen the juice on most NFL games regularly fall below 4% so far this season, suggesting that competition works in gambling in the same way that it does in every other business. We hope state regulators are paying attention.
It's possible to draw a number of takeaways from these September numbers