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Golden Nugget igaming revenue grows 84.3% in second quarter


Golden Nugget Online Gaming (GNOG), the igaming division of the casino chain that is preparing a stock market listing, has revealed that gross gaming revenue for the second quarter of 2020 almost doubled year-on-year. 

Gross revenue for the three months to 30 June grew 84.3% to $28.2m, and after expenses were factored in, net revenue for the quarter was up 78.4% to $24.8m. 

Thomas Winter, senior vice president and general manager of GNOG, said the company surpassed its targets for the period, supported by record levels of player activity and average revenue per user. 

“Our online play has remained strong in July and into August, and we are confident that we will exceed our revenue and operating income forecast in New Jersey this year,” Winter added.

While the business did not provide a full breakdown of profit and loss, it noted that operating income for the period also rose, by 73.5% to $8.5m. 

“We are pleased with the continued strong revenue growth in New Jersey and our ongoing profitability.” Tilman J. Fertitta, GNOG’s sole shareholder and chief executive of current parent company Landry’s, said.

The business is in the process of listing on New York’s Nasdaq Stock Exchange through a merger with Landcadia Holdings II, a blank check company created through a joint venture between Fertitta and investment bank Jeffries LLC.

When that deal was announced, it was revealed that the business expects to generate revenue of $122m in the 2020 calendar year. The merger, and stock market listing, is expected to be finalized in the third quarter of the year.

It will then look to expand beyond New Jersey for the first time in 2021, moving into Michigan and Pennsylvania. In Pennsylvania, it secured two of the remaining online slots and table games licenses for $8m, having been approved as a qualified gaming entity by the state Gaming Control Board. 

This allowed operators licensed in other states to acquire any remaining licences after Pennsylvania’s land-based operators had a chance to apply for certification. It is now awaiting final approval from the regulator, which would clear it for launch. 

In Michigan, meanwhile, GNOG struck a market access agreement with the Keweenaw Bay Indian Community, operator of Ojibwa Casino, in July.

“We look forward to expanding our operations to Pennsylvania and Michigan, where our licensing process is ongoing,” Winter said. 

“We are closely monitoring the legislative momentum in other states and, with the access to capital provided by the proposed transaction with Landcadia, we will seek to expand our US online gaming business, wherever regulations provide for profitable growth opportunities.”