Subject to approved changes to legislation, Golden Nugget has reached an agreement with Tioga Downs Racetrack LLP in a bid to steal a march on rival competitors looking to enter what could be a highly competitive New York market in the online gambling industry.
Already, Golden Nugget has witnessed substantial success in the New Jersey and Pennsylvania markets where online gambling is on the up and up, particularly in the latter, where legislation was approved much later.
In addition, Golden Nugget has also launched in Michigan following recent legislative approval and as a result, the online casino giant is keen to ride the crest of a wave and be one of the first major players in the state of New York, which represents mouthwatering possibilities with early market estimations projected to be worth a couple of billion dollars at least.
The deal with Tioga Downs Racetrack is no doubt a strategic entry to market which could substantially smooth its way into gaining significant market share in the state.
There is no doubt, that this is a highly shrewd commercial deal for Golden Nugget, with a 2-decade arrangement understood to have been brokered which will see the online casino behemoth pay Tioga Downs only one from seven casinos in New York a fraction of its profit. This will fall into the bracket of royalty deals over the 20-year period. Access to players in the state of New York will be under the Tioga Downs license.
President of Golden Nugget Thomas Winter has highlighted the potential that this represents for the company indicating that New York plays an important role in its growth strategy as well as addressing the excitement that a deal with Tioga Downs represents. He also referred to the potential for further partnership deals in other US states as other markets open up and see New York as a key, influencing factor in the company’s ambitious growth plans.
Tioga Downs’ owner Jeff Gural was equally optimistic about the deal, emphasizing that the deal was beneficial for all parties involved when it comes to opening up other opportunities for turnover, including the state of New York itself.
This latest deal for the online casino brand is just the latest piece of good news in what has been a positive couple of years. With substantial market share in New Jersey, Pennsylvania, and now Michigan, it is undeniably a giant in the making which could even hold its own against any land based giant such as Caesers looking to catapult its position with acquisitions of major European online brand’s assets for the US market.
The key for Golden Nugget, especially in regards to route to entry in New York is timing and this partnership deal with Tioga Downs suggests they already have foundations in place that has positioned themselves to really hit the ground running, subject to legislation being passed. This suggests that this obstacle is merely a formality.
While the other states that the casino appears in all represent a decent market size with modest average disposable incomes, New York is undoubtedly a whale. The city of New York being home to some of the world’s most prestigious investment banks, hedge funds, and law firms, it is essentially a gambler’s paradise, where the availability to gamble online unlocks potentially 10s of millions for Golden Nugget if they can quickly steal a sizeable market share.
Written for OnlineCasino-Australia.com by Martin Jones - Published on 25-02-2021