The biggest synergies will come next year when we migrate the entire Golden Nugget operation onto our platform. We’re very excited about that. Golden Nugget Casino PA could be closer to launching in the Keystone State.
DraftKings said it was making progress integrating Golden Nugget online casino games into its platform and predicted it would migrate to the new platform entirely by the second half of 2023.
Executives with Boston-based DraftKings have been tight-lipped about the future of Golden Nugget Online Gaming (GNOG) since it completed its acquisition in May. At the time of the purchase, DraftKings said it expected synergies of $300 million or more over the lifetime of the deal to buy GNOG.
CEO: Golden Nugget Integration by H2 2023
In comments earlier this month, DraftKings CEO Jason Robins pulled the curtain back a little on where things stood with GNOG.
During an earnings call on November 4 to discuss Q3 2022, Robins said the integration was “going really well” and that the company had already “started to realize some synergies, particularly on the marketing side.
“The biggest synergies will come next year when we migrate the entire Golden Nugget operation onto our platform. We’re very excited about that. It should hopefully be [completed] in the back half of the year. Everything is on track.”
Robins added that development teams at DraftKings “are gelling really nicely, and really excited about the future of Golden Nugget as a way to penetrate deeper into the iGaming market.”
“Multi-Brand” Strategy At Work
The CEO’s last comment was no idle chit-chat.
When the GNOG deal closed in May, DraftKings talked of deploying a “multi-brand” strategy in the online casino vertical. The strategy would be based on integrating GNOG’s “built-in iGaming-first customer” approach with DraftKings’ tech stack. The combo was touted to enhance cross-selling opportunities between online casino gaming and sports betting.
That strongly suggests that DraftKings plans to deploy Golden Nugget online casino in markets where it doesn’t currently operate.
The six states that have legal online casino gaming are Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia.
Golden Nugget is live in Michigan, New Jersey, and West Virginia. It is unlikely to launch in Connecticut or Delaware. That leaves just one option — join the Pennsylvania online casinos and launch in the Keystone State.
Pennsylvania Only Market Available to Launch
In the Garden State, Golden Nugget is one of the top three online casinos in revenue, according to the state Department of Gaming Enforcement (NJDGE).
The operator grossed $38.4 million in online casino revenue and held 26.5% of the market in October — just behind rivals Borgata (27.8%) and Resorts (26.8%). The three usually trade the top three spots amongst each other.
Meanwhile, in Michigan, Golden Nugget was the fifth-largest online casino operator by revenue, with $6.5 million in October, data from the Michigan Gaming Control Board (MGCB) show. It has consistently trailed the big three in the state — BetMGM, DraftKings, and FanDuel — and BetRivers, which was in fourth place. But Golden Nugget’s presence has been expanding in the state.
Golden Nugget is believed to be one of the smaller online casino operators in West Virginia. The state lottery does not report revenue from individual operators.
While DraftKings has access to Connecticut through its partnership with the Mashantucket Pequot Tribal Nation, which owns and operates Foxwoods Resorts, it might not be allowed to launch Golden Nugget online casino there.
Earlier this month, a spokeswoman for the Connecticut Department of Consumer Protection (CDCP), the state gaming regulator, said Connecticut’s gaming laws “do not allow multiple operators to be associated with a license.”
Delaware, the last of the states with legal online casino gaming, is a monopoly held by 888casino through a partnership with the Delaware Lottery and three racinos in the state.
Learn more about all the Keystone State has to offer in our comprehensive PA Online Casino Reviews.