While revenue was up for Q3, the company saw a net loss for the period. The operator recently launched in West Virginia and Virginia, and now plans to expand into new jurisdictions. A merger with DraftKings is expected to close in Q1 2022, and the company has withdrawn its Pennsylvania application until the takeover closes. Positive Michigan figures position the market to be on par with NJ in the future.
Golden Nugget Online Gaming has reported its financial results for the third quarter of the year. Revenue for the period was $35.6 million, up 37.4% over the prior year. The online casino operator also reported a net loss for the quarter of $31.3 million, compared to a net loss of $1.8 million in 2020; and an Adjusted EBITDA loss of $2.5 million, versus $8.2 million last year.
Figures were also provided for the first nine months of 2021: revenue increased 28.2% to $94.1 million compared to last year; and net income up to September 2021 was $36.7 million, compared to $2.5 million in 2020. Adjusted EBITDA posted a $9.8 million loss, compared to a positive $22.6 million in 2020, primarily attributable to growth investments in new markets.
“We are pleased to deliver another quarter of double-digit revenue growth in an increasingly competitive market,” said Chairman and CEO Tilman Fertitta. “Golden Nugget Online Gaming continues to pride itself in making the right investments in product, marketing and technology without wavering from our ultimate goal of profitability.”
The CEO also remarked on recent launches in West Virginia and Virginia, with the company now planning to expand “into new jurisdictions,” including Arizona, Ontario and Pennsylvania. In terms of content offering, the company deployed 103 new games in Michigan and 90 new titles in New Jersey in Q3; and now expects to bring the offering in NJ to over 1,000 games in Q4.
Other period highlights include a partnership with Greentube and the launch of live dealer auto-roulette in New Jersey. The company is also continuing the expansion of its live dealer studio in NJ; while in Michigan the gaming business launched its Free Spins promotion.
West Virginia marked the third jurisdiction in which GNOG went live with online casino, on September 22, where it also launched its sportsbook. Additionally, the state Lottery granted the company a permanent iGaming and sports wagering management services provider permit.
Meanwhile, Virginia marked the fourth jurisdiction in which Golden Nugget is live with its online sportsbook, after launch on September 29; while New Jersey saw a live dealer agreement with Entain, now extended for three more years.
In an update of the proposed merger transaction with DraftKings, expected to close in the first quarter of 2022, Golden Nugget said it has temporarily withdrawn its petition with Pennsylvania for an interactive gaming certificate, and now expects “to promptly reapply for such certificate after the merger closes.”
The company now expects to commence operations there “at the end of the first quarter of 2022” and, as a result of the delayed launch in Pennsylvania, Golden Nugget expects to come in at the low end of the range of its revenue guidance for the year.
“2021 continues to be a banner year for growth at GNOG,” said President Thomas Winter. “In Michigan, we continue to grow revenues, posting a 26.3% GGR increase over Q2 2021, while the rest of the market grew 4.7%.” The iGaming company expects improved consumer loyalty to make Michigan eventually be at par with New Jersey in its revenue mix.
