DraftKings is increasing its stake in the increasingly popular iGaming marketplace with its acquisition of Golden Nugget Online Gaming.
Jason Robins, president and CEO of DraftKings, said the acquisition offers the Boston-based online bookmaker “significant” opportunities to raise revenue.
With this acquisition, DraftKings can save money on advertising spending, vendor services, overhead and more, the company said in a press release on Thursday.
The acquisition of iGaming will also allow DraftKings online casino to expand its offerings, including the Golden Nugget Online Gaming live dealer game.
Houston-based Golden Nugget Online Gaming was the first mobile platform to offer a live dealer studio, allowing participants to interact with other players and a dealer in a live environment, according to its website.
Golden Nugget Online Gaming operates in New Jersey and Michigan and is attempting to enter the iGaming markets in Pennsylvania, Illinois, Virginia and West Virginia.
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Golden Nugget casinos are not included in the offer
The acquisition of iGaming does not include Fertitta Entertainment’s Golden Nugget casinos, including the historic resort on Fremont Street in downtown Las Vegas.
In addition to the downtown Las Vegas property, Golden Nugget owner Tilman Fertitta plans to build a resort on the east side of the Strip near the Planet Hollywood hotel-casino, according to the Las Vegas Review-Journal .
Golden Nugget Resorts are also located in Louisiana, Mississippi and New Jersey.
Sportsbooks to take the DraftKings brand
With this agreement iGaming, DraftKings and Fertitta Entertainment plan to mark sports betting within certain Golden Nugget casinos as DraftKings Sportsbooks.
An example of this brand has already been produced in Louisiana. Sports betting inside the Golden Nugget River Casino on Lake Charles bears the DraftKings brand.
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DraftKings stakes include the Casino app
In addition to applications for online sports betting and daily fantasy sports, DraftKings has a casino app available for download. The iGaming app includes offers such as blackjack, slot machines and poker.
In the U.S., the DraftKings Casino app is available to players in New Jersey, Pennsylvania, West Virginia, Michigan, and Connecticut.
DraftKings is also among the online betting companies and iGaming entering the new commercial gaming market in Ontario, Canada.
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Higher iGaming revenue than sports betting
For years, some casino executives struggled with efforts to legalize online casinos, fearing that customers would not enter the property and spend money if they could play slot machines and board games at home with computers.
However, that resistance may be eroding as gaming companies explore opportunities to reach a larger number of tech bettors, including those with little interest in sports betting.
An example of the popularity of online gaming is in Connecticut, where the amount of money wagered on iGaming far exceeds the amount wagered on sports.
In February, for example, Connecticut’s iGaming handling exceeded $ 743.8 million, far more than the $ 115.6 million in sports betting.
By mid-March, about 500 online casino games in Connecticut had been approved, including craps, blackjack, slot machines and poker.
iGaming under consideration in New York
Next to New York, the fourth most populous state in the country, iGaming will be legalized in the near future, State Sen. Joseph Addabbo, D-Queens, told Gambling.com.
The senator said he was “laying the groundwork” for a possible approval of iGaming in New York. Addabbo is chairman of the State Committee on Racing, Games and Betting.
New Yorkers have already shown that they like to use mobile devices while playing.
Since the January 8 launch of online sports betting, New York’s eight licensed commercial bookmakers have accepted about $ 6 billion in combined legal bets. This betting activity has generated more than $ 210 million in tax revenue for the state.
If iGaming is approved in New York, revenue from online games such as slots, poker and roulette is expected to overshadow the money generated from sports betting, Addabbo said.
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