Optimized tech: DraftKings in-house tech platforms can cut out some of the third-party expenses Golden Nugget was paying before the acquisition.Better marketing: DraftKings gets a better ROI on their advertising spend via Golden Nugget’s customer base.More revenue: DraftKings wants Golden Nugget’s iGaming-focused customers. In a statement about the Golden Nugget acquisition, DraftKings identified three main benefits: Robins said during the Q3 earnings call that DraftKings sees Golden Nugget “as a way to penetrate deeper into the iGaming market.” It’s an endeavor that fits well with DraftKings’ focus on online gambling. October’s revenue report is a good example of that:ĭraftKings sees Golden Nugget as a way to get online gambling revenueīreaking into the Pennsylvania market has been a Golden Nugget ambition for a couple of years. The other seven casinos fight for the scraps. Three casinos generate more than 75% of the state’s online gambling revenue: Hollywood Casino at Penn National, Rivers Casino Philadelphia, and Valley Forge Casino Resort. Golden Nugget faces big-three in revenue battleĪs lucrative as the Pennsylvania online casino market is, it’s really a story of the haves and have-nots. That total was a record not only for the state but for the entire country. In March, for example, its online gambling produced more than $142.7 million. Pennsylvania is a monthly contender for generating the most online casino revenue in the country. Online casinos generated more than $700 million in bets in October, and online gambling generated more than $124 million in revenue. Additionally, the Pennsylvania market is a massive one. There’s plenty of competition, but Golden Nugget will benefit from DraftKings’ online expertise and brand recognition. By the time Golden Nugget and DraftKings launch next year, there may be more operators in the market. How Golden Nugget fits into the Pennsylvania online casino marketĪs of now, there are 18 online casinos operating in Pennsylvania. The two already run an online casino in West Virginia and hope to launch in Pennsylvania in the “back half” of 2023, DraftKings CEO said during the company’s Q3 earnings call. Golden Nugget is ready to add to what’s been a stellar year for Pennsylvania online casinos.ĭraftKings acquired the casino brand earlier this year.
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