Golden Nugget Online Gaming (GNOG) reported a 65.8% year-on-year rise in gross gaming revenue for 2020 to between $101.0m and $102.0m, in its first results since spinning off from the land-based Landry’s business.
Breaking down this gross gaming revenue total, GNOG made $79.0m in net gaming revenue, up 65.6% year-on-year, while players wagered a further $22.0m, up 66.7%, through promotional credits or towards progressive jackpots.
The operator’s total revenue is set to fall between $90.0m and $91.0m, up 63% year-on-year, though it did not outline non-gaming revenue.
GNOG added that it expects its operating income to end up between $28.0m and $29.0m before costs related to the merger with with special purpose acquisition company (SPAC) Landcadia Holdings II.
After these costs, operating income is set to come to $23.0m to $24.0m, an increase of around 38%.
Golden Nugget Online Gaming chairman and chief executive Tilman Fertitta said 2020 was a milestone year for the business, thanks to both the high revenue and GNOG going public on the Nasdaq at the end of the year through the Landcadia II merger.
“We are very pleased with yet another year of rapid and profitable growth. 2020 was a transformational year for GNOG, which went public, reached $100 million in GGR and signed market access agreements in multiple states,” Fertitta said.
In 2020, all of GNOG’s operations were in New Jersey, but it went live in Michigan in January of this year – in partnership with the Ojibwa casino in the state’s Upper Penninsula – when the state’s online gaming market opened.
GNOG president Thomas Winter said the operator was already seeing stakes worth almost $2m per day in the Wolverine state.
“We are thrilled to be live in Michigan and are optimistic about the revenue opportunity,” Winter said. “We have just launched our marketing campaign and are already recording close to $2 million dollars in daily casino wagers.
“Michigan is embracing online gaming at a rapid pace and we anticipate that our business in the Great Lakes State will exceed our earlier expectations.”
Fertitta added that he was excited to expand across the US in 2021.
“We look forward to replicating our New Jersey success in many other states and taking advantage of the strong growth of online gaming in the US.”
In addition, Golden Nugget Online Gaming also announced that Kevin Vonasek had joined the business as vice president of corporate development.
Vosanek will work on the operator’s entry into new markets, as well as other “strategic initiatives” such as the addition of new products.
Vosanek served as chief product officer and then commercial director for the Americas for NYX Gaming Group from 2013 until its acquisition by Scientific Games in 2018, when he joined the gaming technology giant’s Americas division as vice president for business development.
“Kevin holds the perfect mix of product, commercial and entrepreneurial expertise that we were looking for. He will play a key role in our ambitious expansion plans,” Winter said.
Vosanek had also served in C-level roles at casino-style tournament game provider ZEN Entertainment Network and poker supplier Power Play Development.
“For many years I have held the Golden Nugget team and their accomplishments in the highest regard,” Vosanek said. “I am very excited to be joining the team and I look forward to helping GNOG expand its market leading position across every US igaming market.”