Golden nugget is ready to contribute to an outstanding year for online casinos in Pennsylvania.
DraftKings acquired the casino brand earlier this year. The two already operate an online casino in West Virginia and hope to launch in Pennsylvania in the “back half” of 2023, DraftKings’ CEO said during the company Earnings call for Q3.
How Golden Nugget fits into the Pennsylvania online casino market
As of now there is 18 online casinos working in Pennsylvania. By the time Golden Nugget and DraftKings launch next year, there may be more operators in the market.
There is a lot of competition, but Golden Nugget will benefit from DraftKings online competence and brand awareness. In addition, the market in Pennsylvania is huge.
Online casinos generated more than $700 million in bets in October, and online gambling generated more than $124 million in sales.
Pennsylvania is a monthly contender for generating the highest online casino revenue in the country. In March, for example, online gambling brought in more than $142.7 million.
This sum was a record not only for the state, but for the whole country.
Golden Nugget faces the Big Three in the battle for revenue
As lucrative as the Pennsylvania online casino market is, it is truly a tale of haves and have-nots.
Generate three casinos more than 75% of the state’s online gaming revenue: Hollywood Casino at Penn National, Rivers Casino Philadelphia, and Valley Forge Casino Resort. The other seven casinos fight for the rest.
revenue in October Report is a good example of this:
- Hollywood Casino: $52.7 million
- Rivers Casino: $29.3 million
- Valley Forge Casino: $23.4 million
- Remaining seven casinos: $19.1 million
DraftKings sees Golden Nugget as a way to generate revenue from online gambling
Breaking through the Pennsylvania market has been an ambitious goal for Golden Nugget for several years. It’s an endeavor that goes well with that DraftKings focuses on online gambling.
Robins said during the third-quarter earnings conference call that DraftKings sees Golden Nugget “as a way to delve deeper into the iGaming market.”
In a statement about the Golden Nugget acquisition, DraftKings said identified three main benefits:
- More revenue: DraftKings wants iGaming-focused customers from Golden Nugget
- Better Marketing: DraftKings is getting better ROI on its ad spend through Golden Nugget’s customer base.
- Optimized technology: DraftKings’ in-house technology platforms can save some of the third-party costs that Golden Nugget paid for before the acquisition
Robins said of the acquisition:
“We expect this acquisition to result in meaningful revenue growth by leveraging our data-driven marketing capabilities and a two-brand iGaming strategy, gross margin improvement opportunities and cost savings.”