Golden Nugget gets Route into potential New York Online Market

Categories: New York, News | Published by: Alex W

01/03/2021

Golden Nugget has signed a deal to gain access to the potential New York online gaming market.

Hot on the heels of Penn National Gaming announcing a 20-year strategic partnership with Rivers Casino & Resort in Schenectady, New York, another major gaming company has signed a deal with a New York casino. Golden Nugget Online Gaming (GNOG) has revealed it has agreed to a 20-year partnership with Tioga Downs Race Track. This deal will secure future online gaming market access in New York for GNOG, subject to legislation being enacted and regulatory approvals.

The deal sees GNOG online casino gaming enter the New York gaming scene under a Tioga Downs license if and when regulations are approved. Tioga Downs is one of seven commercial casinos located in the Empire State. GNOG will pay the property a percentage of its net gaming revenue, subject to minimum royalty payments.

Like the aforementioned Penn National deal, GNOG could gain entry into potentially one of the biggest iGaming and online sports betting markets in the United States.

Thomas Winter, president of GNOG, said the company is “very excited to sign this long-term partnership with Jeff Gural and Tioga Downs.” He was keen to state that New York was “key to our growth strategy” and was confident that New York would embrace online gaming. Winter added that GNOG would “remain focused on securing new market access partners in more U.S. states.” He said GNOG represents an “iconic brand,” and the company is “uniquely positioned to take advantage of the exponential growth of iGaming in the U.S.”

New York Could be a Massive iGaming Industry

GNOG believes the New York online casino market could reach $2 billion gross gaming revenue. The Big Apple is the ninth state where GNOG has gained market access. The other locations include New Jersey, Illinois, Pennsylvania, Nevada, Michigan, West Virginia, Louisiana, and Mississippi.

Jeff Gural described GNOG as having “one of the most experienced online teams” in addition to a “proven track record in our neighboring state of New Jersey.” He said he was confident GNOG “will bring an exciting product to my home state of New York” and that both companies will “generate excellent new revenue streams for the state of New York.”

Gural also operates and owns Meadowlands Racetrack in East Rutherford, New Jersey. This location is the primary site for FanDuel Sportsbook in the Garden State. The Tioga Downs Casino Resort opened in 2006 and offers casino gaming, dining, golf, indoor and outdoor live entertainment, and live harness racing.

New York Gaming Market

New York currently has in-person legal sports betting at its four commercial casinos, including Tioga Downs. However, as there is no regulated online market, it has fallen behind other states, particularly neighboring New Jersey and Pennsylvania, regarding sports betting handle and revenue.

N.Y. Governor Andrew Cuomo and legislators have disagreed on how a regulated online gaming industry would work in New York. Two separate proposals have been put forward to consider during the current legislative session. Cuomo would prefer online sports betting to operate like a state lottery, while lawmakers prefer multiple operators and an open market.