The word “record” is used regularly whenever discussing Golden Nugget Online Gaming (GNOG).
The latest? Golden Nugget reported a record second quarter. The company touched on some of the highlights via a press release.
Here is a closer look at the standout numbers:
- Gross gaming revenues of $28.2 million. This is compared to $15.3 million during the same period in 2019, for an increase of 85%.
- Net revenue of $24.8 million compared to $13.9 million. That’s good enough for a 78% year-over-year increase.
- Operating income of $8.5 million versus $4.9 million, and that’s a 74% increase.
And here’s another number: The Golden Nugget online casino is 100% responsible for this performance.
Tilman J. Fertitta, GNOG’s owner, commented on the overall performance:
“We are pleased with the continued strong revenue growth in New Jersey and our ongoing profitability.”
Golden Nugget is not slowing down in NJ
While some customers were likely excited to revisit the land-based casino, NJ online gaming revenue was once again the much bigger story. Golden Nugget AC reported $31.4 million in online revenue (compared to just $8.8 million from retail).
Besides it being a new all-time high, it was good enough for a 111.3% year-over-year increase.
NJ online casino apps, as a whole, reported a record-breaking $87.4 million in July.
But the bigger question is how long is this great run going to last. Will some of this business eventually shift back to the casino floor?
Here are a few factors to consider:
- Casino floors are limited to 25% capacity.
- There is no smoking, eating, or drinking on gaming floors.
- Restarting indoor dining remains a work in progress.
As a result, each of the properties is taking a creative approach to player offerings.
— Golden Nugget AC (@goldennuggetac) August 16, 2020
The benefit of NJ online casinos is that gamblers don’t have to be in Atlantic City to gamble. And at 25% capacity with no indoor dining, it’s likely gamblers chose to continue staying home in July.
And that was a boon for GNOG.
Golden Nugget Online Gaming preparing to go public
Pretty soon, Golden Nugget Online Gaming will be under a much brighter spotlight. It will soon be a publicly-traded company on NASDAQ.
Back in June, GNOG entered into a transaction agreement with Landcadia Holdings II Inc., which will eventually be traded under the GNOG ticker symbol. The deal is expected to close during the current quarter, but the official date has yet to be announced.
Thomas Winter, senior vice president and general manager of GNOG, commented on the recent performance as well as the future.
“Our second quarter beat our target, supported by record players activity and Average Revenue per User (ARPU). 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.”
The licensing process in Pennsylvania and Michigan is ongoing. Meanwhile, Golden Nugget Online Gaming is “monitoring legislative momentum in other states,” said Winter.
The ultimate goal is to expand the Golden Nugget’s US online gaming business “wherever regulations provide for profitable growth opportunities.”