The Golden Ticket: First-time depositors grow 313% in GNOG H1 report

Golden Nugget Online Gaming (GNOG), the online casino operator, has reported its financial results for the second quarter alongside the first half of 2021. 

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The Q2 and H1 financial highlights show its revenue standing at $31.7m, indicating an increase of 28% compared to $24.8m during the second quarter of 2020. Growth is also shown in revenue for the first half of 2021, increasing 39% to the value of $58.4m, in comparison to $42.2m during the first half of 2020.

The company’s Q2 net loss was $16m, as opposed to net income of $0.1m in the year prior. However, net income for the company’s H1 was $68.1m in 2021, compared to net income of $4.3m during the prior-year period. The report shows adjusted EBITDA reached $3.8m for the second quarter, which was a significant drop from the $8.5m it made in the second quarter of 2020. In terms of the first half of the year, adjusted EBITDA also dropped from $7.4m this year, in comparison to $14.4m for H1 2020. This noticeable decline in adjusted EBITDA compared to the prior year is primarily attributable to growth investments in new markets such as Michigan.

There was further growth, however, in active first-time depositors (AFTD). For Q2, this grew 110% compared to Q2 2020, while 12-month active depositors grew 108%. For H1, AFTD grew 313%.

Chairman and CFO, Tilman Fertitta, said: "We are proud to have achieved another solid quarter driven by the strength of our new customer growth both in our established and newer markets. Golden Nugget Online Gaming continues to successfully execute on our national expansion, while concurrently strengthening our capabilities and product offerings with key partnerships.

“In Michigan, we grew market share and are very pleased with the trajectory of growth in the early quarters of our operations. We expect similar trajectories for our planned launches in Virginia, West Virginia and Pennsylvania later this year. In addition, our partnership with Boom Entertainment will only strengthen our award-winning content offerings.

“We are increasingly encouraged by our results and look forward to executing on the significant and growing market opportunity available to us."

GNOG also underwent significant change over the Q2 period, and entered into an agreement with DraftKings this Q2; an arrangement whereby DraftKings will acquire GNOG in an all-stock transaction, with an implied equity value of approximately $1.56bn. In addition to this was a signed partnership with premier provider, Boom Entertainment.

With aims to develop quality products and initiate exclusive content and evolution, GNOG's goals are focused around producing bespoke game development. Its Android App is now available in the Google Play Store across New Jersey and Michigan. To encourage retention of player base and customers, GNOG launched its flagship $1m wagering race in July, with a monthly promotion of a top prize of $100,000.

President Thomas Winter stated: "GNOG continues to show strong growth with our results in the first half of this year. In Michigan, we more than tripled our market share since launch, which validates our steady, ROI-focused growth investments. In the second quarter we grew gross gaming revenue (GGR), 99% over the first quarter while the rest of the market only grew 35%.

“In July, the positive trend continued with GGR over $5.3m, a 32% increase over the monthly average in the second quarter, making GNOG the fifth-largest iGaming operator in the state, with a market share of 6%.

“In New Jersey, where market revenues had been boosted by the pandemic last year, we were still able to grow net revenues by 9% in the first six months of 2021 compared to the prior-year period."  

He added: "Our latest agreements highlight yet another big step in executing on our market expansion plans, by adding the states of Ohio and Arizona to our list of potential future markets, and we look forward to launching online casino and sports when legislation and regulations permit. 

“GNOG's focus on innovation and exclusive games is also on full display with our partnership with Boom Entertainment. Our players can look forward to continued innovation from our best-in-class online casino."


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