Add Golden Nugget to the list of operators staking a claim to New York’s yet-to-be-determined online sports betting and gaming market.
Golden Nugget Online Gaming, part of the gaming, restaurant, and entertainment empire controlled by Houston billionaire Tilman Fertitta, said Tuesday it signed a deal with the owners of Tioga Downs Race Track in New York for future online gaming market access in the state.
The agreement hinges on the approval of New York legislation that would allow online wagering.
The governor wants the state’s gaming commission to operate sports betting through one of four commercial casinos. Meanwhile, New York lawmakers may consider legislation that would allow the state’s casinos – which currently have retail sportsbooks – to launch online sports betting with multiple skins.
On Monday, Penn National Gaming said it reached a market access agreement for New York with Rivers Casino in Schenectady, which could land the company’s Barstool Sports app in the state.
Tioga Downs, which opened in 2006 to live harness racing, expanded to add a casino and 160-room resort in 2016. However, the facility does not have a retail sportsbook.
The racetrack is located in Nichols, which is roughly 200 miles north of New York City.
Tioga Downs owner Jeffery Gural said the potential partnership could generate “excellent new revenue streams for Golden Nugget Online, Tioga and the state of New York.”
New York Gov. Andrew Cuomo said in January sports betting tax revenues would the state close a four-year budget gap, estimated at between $70 billion to $75 billion. Cuomo said New York has the potential to be “the largest sports wagering market” in the U.S.
A study conducted by Spectrum Gaming estimated the state’s four commercial casinos and three Native American gaming tribes could take in more than $1 billion in online sports betting bets, which would lead to roughly $100 million in taxes for the state government.
The 20-year agreement would provide Golden Nugget Online market access to New York for online gaming under a Tioga Downs license, pending regulatory approval. Golden Nugget would pay Tioga Downs a percentage of its net gaming revenue, which will be subject to minimum royalty payments for the duration of the term.
Through Golden Nugget Atlantic City, one of five Golden Nugget-branded casinos operated by Fertitta’s company, Golden Nugget Online has one of the top-performing online casinos in New Jersey. The company launched online gaming and sports betting operations in Michigan last month through a partnership with Ojibwa Casino and the Keweenaw Bay Indian Community.
New York is the 9th state where Golden Nugget Online has gained market access in recent months, joining Michigan, Nevada, Pennsylvania, Illinois, West Virginia, Mississippi, Louisiana, and New Jersey.
Golden Nugget Online President Thomas Winter said the company’s total addressable U.S. online sports betting and casino market is now estimated to be approximately $10 billion at maturity.
With close to 19.5 million residents, New York is the U.S.’s fourth most populous state. Based on revenue trends in New Jersey and Pennsylvania, Golden Nugget Online believes that the New York online casino market could reach $2 billion in gaming revenue at maturity.
“New York is key to our growth strategy and we look forward to the state embracing online gaming,” Winter said. “We will remain focused on securing new market access partners in more U.S. states.”
Shares of Golden Nugget Online, traded on the Nasdaq, were up 3% Wednesday morning.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
