The Borgata Casino & Spa in Atlantic City was the first online operator to turn a profit in New Jersey, posting a profit starting in Q3 of 2014. Now a year later, the operator celebrates a full year of profitability.
Boyd Gaming’s Q2 2015 earnings call was held late last month and it was revealed that the company’s online division had posted a profit for the fourth consecutive quarter since Q2 of 2014. That quarter the company broke even and has posted a profit since.
Borgata Profited $1 Million from iGaming in Q2 2015
In the previous quarter, the Borgata collected $11.5 million in gross gaming revenue. This is down slightly from the $11.7 million collected in Q1 of 2015. According to the report, the downtrend was blamed on online poker due to the seasonal downturn.
Borgata’s iGaming win reflects that of the entire company. According to the earnings call, the Borgata enjoyed profits that were 45% higher than those in the previous quarter. They also reported that iGaming profits were $1.6 million during the previous quarter, up from $1.1 million.
Can Borgata Continue Their Winning Streak?
Based on profits in the prior two quarters, there’s little reason to believe that Borgata will suddenly go into the red over the next quarter. In fact, historical indicators would suggest that the company should see increased traffic over the next quarter as more players return to gambling as summer becomes fall.
Table game revenues continue to perform strong throughout New Jersey and that trend is expected to continue. The slide that online poker has been experiencing also appears to be slowing and operators are hopeful that numbers will start to climb upward.
A small increase in online poker revenues will help bolster profits. Last year, online poker earnings jumped nearly 10% in Q3. A similar jump this year could result in profits climbing to nearly $2 million for the quarter, perhaps more.
The only thing that could negatively impact revenues in the next quarter is the return of PokerStars to the United States. However, that return does not appear likely in the next quarter. The Division of Gaming Enforcement has yet to approve PokerStars application and unless things are fast-tracked over the next few weeks, it may be Q4 before we see a PokerStars return.
Why Has Borgata Experienced Steady Profitability?
The Borgata became profitable much sooner than anyone expected and has been able to retain that status in a tough NJ iGaming market. Part of this is due to extensive marketing by the company that helped to increase brand and product awareness.
Next, the company has stayed on top with solid gaming options and rewards that can also convert into live casino experiences. Live players that can earn comps and rewards online are more likely to play online.
Lastly, Borgata has done a great job in retaining players that signup. Some of it is due to promotions while some is due to the gaming options that they cannot find elsewhere. One example is Pala Casino’s daily $1 million daily spin. This Borgata partner offers a gimmick not seen on other sites. This type of progressive promotion helps attract and retain players, creating brand loyalty.
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