Golden Nugget Gains New York Online Gaming Market Access
Just two days after Penn National Gaming announced a 20-year strategic partnership with Rivers Casino & Resort in Schenectady, New York, another gaming company entered into an agreement with a New York casino on Wednesday.
Golden Nugget Online Gaming (GNOG) announced Wednesday it has entered into a 20-year partnership with Tioga Downs Race Track for future online gaming market access in New York, subject to legislation being enacted and regulatory approvals.
The agreement gives GNOG online casino gaming access under a Tioga Downs license, regulations permitting, according to a news release. GNOG will pay Tioga Downs, one of only seven commercial and tribal casinos in the state, a percentage of its net gaming revenue, subject to minimum royalty payments.
Like the Penn National deal announced on Monday, GNOG could gain entry into potentially one of the largest online sports betting and iGaming markets in the country.
“We are very excited to sign this long-term partnership with Jeff Gural and Tioga Downs. New York is key to our growth strategy and we look forward to the state embracing online gaming,” Thomas Winter, president of GNOG, said in the news release. “We will remain focused on securing new market access partners in more US states. With its iconic brand, superior product and award-winning operations, GNOG is uniquely positioned to take advantage of the exponential growth of online gaming in the U.S.”
NY Potentially a Huge iGaming Market
GNOG estimates the New York online casino market could reach $2 billion gross gaming revenue (GGR) at maturity. New York is the ninth state where GNOG has gained market access. The others are New Jersey, Michigan, Pennsylvania, Illinois, West Virginia, Nevada, Mississippi and Louisiana.
“GNOG has one of the most experienced online teams, a historied U.S. casino brand and a proven track record in our neighboring state of New Jersey,” Gural said in the release. “I’m confident GNOG will bring an exciting product to my home state of New York and together we will generate excellent new revenue streams for GNOG, Tioga and the state of New York.”
Gural also owns Meadowlands Racetrack in East Rutherford, New Jersey, the flagship site for FanDuel Sportsbook in that state, and Vernon Downs in Vernon, New York.
Opened in 2006, Tioga Downs Casino Resort in Nichols, New York, offers live harness racing, casino gaming, dining, golf, indoor and outdoor live entertainment, and more.
After stockholders of Landcadia Holdings II approved the acquisition of Golden Nugget Online Gaming in late December, Landcadia changed its name to Golden Nugget Online Gaming, Inc. The company trades on the Nasdaq under the ticker symbol "GNOG."
Shares of GNOG were up 46 cents to $15.50 Wednesday morning after the news of the access agreement became known.
New York Gaming Scene
New York has had legal in-person sports betting at its four commercial casinos, including Tioga Downs, but the lack of an online market has left the state far behind other states, especially neighboring New Jersey and Pennsylvania, in sports betting handle and revenue.
Gov. Andrew Cuomo and legislators have very different online sports betting proposals to consider during the current legislative session. Cuomo wants online sports betting run like the state lottery while lawmakers prefer multiple operators and an open market.
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