New Jersey Hits Record $1B in iGaming Revenue; Here’s How the Stock Market Reacted
By Space Coast Daily // May 19, 2022
In the last few years, we’ve seen the iGaming sector boom in terms of profitability. By 2023, it is expected to be worth more than $92.9 billion. It was valued at $59 billion in March 2022, implying that it is expanding at such a quick rate that it is predicted to nearly double in the following year.
According to the iGamingNJ’s ‘21 revenue analysis, New Jersey has shown one of the fastest growths in the county with the $1B milestone reached last year, so it’s no wonder that the stock market’s got something to “say” about it.
NJ iGaming market boom
New Jersey was instrumental in transforming the iGaming environment in the United States, thanks in part to a victorious court battle in which the PASPA was overturned. As a result, New Jersey – and many other states – were able to legalize sports betting.
The casinos of the Garden State make more and more money every single year, however, that doesn’t always mean that the reaction of the stock market is going to correlate with the speed at which the casino’s revenue is growing. Perhaps people are still hesitant in buying stock of companies that represent markets which were devastatingly affected by COVID-19, however, the online presence of casinos is high, and even if the pandemic is set to continue, there are still a lot of opportunities for growth.
Golden Nugget
Golden Nugget Online Gambling, Inc. is a digital sports entertainment and online gaming company. The Golden Nugget first opened its doors to Atlantic City residents on June 19th, 1985.
Some casinos have had a rougher period of transition and adaptation during and after the pandemic, and even in 2021, GN experienced a bit of a decline, 2% loss in revenue. However, they are still the second biggest iGaming brand in NJ. As for the stock prices, they experience a stable negative tendency nonetheless, going down from 17 in October 2021 to 5 in April 2022.
Caesars
Caesars Entertainment, Inc. is a gambling and hotel corporation based in Las Vegas, Nevada. They first opened doors to the residents of Atlantic City in 1979. Caesars is a well-known brand and has had a streak of growth over the past three years, from $46 million in 2019, $78 million in 2020, to $92 million in 2021. Thus, we don’t expect their growth to slow down, yet their stocks went down over the past 6 months, from 110 in October 2021, to 64 in April 2022.
Unibet
Kindred Group plc (previously Unibet) is a company that specializes in online gambling in Europe, Australia, and North America. It had roughly 30 million registered consumers globally as of March 15, 2022. It opened its doors in New Jersey on the 10th of September, 2019.
Kindred’s revenue over the past three years has been very strong, yet it doesn’t see the same rapid growth as Caesars. That being said, their stocks are more stable than that of Caesars or GN. They went down from 128 in October 2021 to 83 in April 2022. Still going down, despite the thriving market.
Bottom line
New Jersey is hell-bent on dominating the iGaming market, and it continues to establish and shatter records. It’s just been three years since New Jersey was able to provide so much in terms of iGaming to its inhabitants, but the state has exceeded all expectations – and we should expect much more growth in the stock market in the coming years.
