Golden Nugget Online Gaming Inc has entered into a definitive agreement with Tioga Downs Race Track LLC for future online gaming market access in the state of New York, subject to legislation, regulatory approval, license eligibility and availability.
Following a record year in New Jersey and its recent launch in Michigan, this agreement gives GNOG market access to the state of New York for online casino wagering under a Tioga Downs’ license, regulations permitting.
As part of the 20-year agreement, GNOG will pay Tioga Downs, one of only seven commercial and tribal casinos in the state, a percentage of its net gaming revenue, which will be subject to minimum royalty payments for the duration of the term.
Based on the latest revenue trends in New Jersey and Pennsylvania, GNOG believes that the New York online casino market could be worth $2bn in gross gaming revenue at maturity. New York is the 9th state where GNOG has gained market access in recent months, regulations and licensing permitting.
Across New Jersey, Michigan, Pennsylvania, Illinois, West Virginia, Nevada, Mississippi, Louisiana and New York, GNOG’s total addressable US online sports betting and casino market is now estimated to be approximately $10bn at maturity.
Company President Thomas Winter 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.”