Subject to legislation, regulatory approval, license eligibility and availability, Golden Nugget Online Gaming Inc (GNOG) has entered into a definitive agreement with Tioga Downs Race Track LLC for potential online gaming market access in the state of New York.
This agreement allows GNOG market access to the state of New York for online casino wagering under a license from Tioga Downs, regulations permitting, following a record year in New Jersey and its recent launch in Michigan.
As part of the 20-year deal, GNOG will pay a percentage of its net gaming income to Tioga Downs, one of the state’s only seven commercial and tribal casinos, which will be subject to minimum royalty payments for the duration of the contract.
GNOG believes that the New York online casino industry could be worth $2bn in gross gaming revenue at maturity, based on the recent revenue patterns in New Jersey and Pennsylvania. New York is the 9th state where, in recent months, GNOG has obtained market access, laws, and licensing permits.
GNOG’s gross addressable US online sports betting and casino market is now projected to be approximately $10bn at maturity across New Jersey, Michigan, Pennsylvania, Illinois, West Virginia, Nevada, Mississippi, Louisiana and New York.
New York key to growth strategy
Thomas Winter, Company President, stated: “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.
“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 US.”
Tioga Downs owner Gural commented: “Tioga Downs is excited to partner with one of the best performing online gaming operators in the US. GNOG has one of the most experienced online teams, a historied US casino brand and a proven track record in our neighboring state of New Jersey.
“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.”