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Golden Nugget Online Gaming sees revenue grow 92% in Q3

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Golden Nugget Online Gaming posted a 91.9% rise in net revenue for the third quarter of the year, and revealed that it expects to finalize its Nasdaq listing by the end of November. 

Gross gaming revenue for the three months to 30 September came to $28.9m, almost double the $14.9m generated in the third quarter of 2019. After gaming taxes, its net revenue came to $25.9m, up from $13.5m in the prior year. 

“Our third quarter confirmed and amplified our momentum in New Jersey, with record revenues supported by all-time-high player activity, sustained marketing investments and 64 new casino games, 20 of which we launched on an exclusive basis,” the operator’s president Thomas Winter said. 

Winter added that based on October’s performance, the business now believes it could generate gross gaming revenue of more than $100m in the state for 2020. 

“We are very pleased with yet another quarter of profitable growth. Our pandemic-proof business model keeps showing its resilience in New Jersey and we look forward to expanding operations in Michigan,” the business’ owner Tilman J. Fertitta added.

While Golden Nugget did not provide a full breakdown of its quarterly performance, it noted that operating profit for the period came to $8.2m almost double Q3 2019’s $4.2m.

The business is planning to expand into Michigan, in partnership with the Keweenaw Bay Indian Community, operator of Ojibwa Casino, something that may take place before the end of the year, dependent on regulatory approval. Golden Nugget is also working its way through the licensing process in Pennsylvania. 

Golden Nugget is actively pursuing additional market access deals to expand across multiple states, the operator added. It believes may be aided by other states looking to license online casino in 2021 and 2022, following the vertical’s stellar performance in New Jersey and Pennsylvania during 2020. 

Much of this is likely to take place once the business is listed on the Nasdaq stock exchange, through a combination with special purpose acquisition company Lancadia Holdings. 

Announced in June, that combination is close to completion, Golden Nugget said, subject to the Securities and Exchange Commission’s review of Lancadia’s proxy statement and regulatory approval. These, the operator said, are expected to be issued before the end of November.