Golden Nugget Wins Approval from New Jersey Regulators to Merge & Go Public

Landcadia Holdings II has finally received the regulatory approval that it has been waiting for from the New Jersey Casino Control Commission. Thanks to this approval, Golden Nugget online can now soon be the acquired property of Landcadia Holdings II, which remains at the helm of billionaire Tilman J. Fertitta.

Although things are not technically official yet, the deal is as good as done. Apart from the regulatory approval, it was waiting on from the New Jersey Casino Control Commission, Landcadia Holdings II now just has to wait for the SEC to approve a few particulars such as the Holdings’ our definitive proxy statement for stockholders. the stockholders themselves will also have to endorse the transaction, which should happen soon.

Golden Nugget has always embraced firsts so it doesn’t come as a surprise that it is one of the most highly regarded brands in the gaming sphere internationally as we’ve talked about here. It was the first to introduce Live Dealer and Live Casino Floor to the iGaming market in the country.

Golden Nugget became only the 2nd online casino operator to trade entirely publicly on a US exchange. The online unit of Landry’s Golden Nugget chain of casinos, otherwise known as Golden Nugget Online Gaming, went public on New York’s NASDAQ exchange earlier on in the year and has been performing quite well despite the challenges presented by the pandemic.

Thanks to a reverse merger agreement with blank check organization Landcadia Holdings II as we’ve covered here, the Golden Nugget online Gaming Inc. is listed under the ticker symbol  “GNOG.” Is now the biggest online casino operator in the New Jersey casino gaming market, valued at an impressive US$745 million.

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As a result of these landmark strategic decisions, GNOG is now one of the best-placed operators to exploit the enormous online gaming prospects that will present themselves in the NJ market future. GNOG’s performance has been outstanding; it’s been the recipient of 15 eGaming Review North America Awards including the topmost title of “Operator of the Year” award for 4 consecutive years (2017 to 2020).

 

Close of merger great news for GNOG

Once the merger Landcadia Holdings’ merger with Golden Nugget Online Gaming closes, it will be great news for LCA stock, which is today trading under the GNOG symbol as we’ve discussed above. Golden Nugget has been posting impressive results thus far. 

Aside from winning coveted several online gaming industry awards, Golden Nugget Online Gaming’s revenue has also risen 72% in the first 9 months of 2020 having taken over $2 billion in wagers since the year began. It was also the only casino in AC to record casino profits during Q2 as we’ve talked about here.

Its financial results for the 3rd quarter of 2020 were equally as impressive as we’ve covered here. Gross gaming revenues had risen by 93% to reach $28.9 million compared to the $14.9 million that was recorded during the same period last year. It generated net revenue of $25.9 million compared to last year’s $13.5 million.

As long as the Golden Nugget continues to record such impressive results, GNOG stock should be a huge hit once the merger is declared official. The only other pure publicly traded online casino company in the country that GNOG has to compete with is DraftKings, which trades under DKNG.

The good news is that Golden Nugget has been performing a lot better than DraftKings, so imagine how things will shake up once the merger is official. Based on revenues for October, GNOG could generate as much as $100 million of Gross Gaming Revenue just this year alone in New Jersey.

When the merger was announced earlier in the year, Landcadia Holdings pledged to transfer $321 million of funds after the merger. It is expected that Golden Nugget will use a portion of these funds to pay some of its debts. A huge percentage of it though should go towards expanding its online gaming and mobile sports betting empire in other states, starting with Michigan.

It is currently awaiting the licensing process in Pennsylvania and should receive regulator approval it needs to set up shop in the state soon. It’s no secret that the online gaming industry has been thriving in these tough times and sports betting, in particular, has never been bigger. As such, GNOG is actively pursuing market access opportunities with fervor.

As it continued to further expand its operations across various states in the country, it should expect to record accelerated growth of both online gaming and sports betting revenues in both New Jersey and Pennsylvania. Hopefully, when these states record impressive results, it will push other states to follow suit and consider online casino legislation in the coming years.

 

Final Thoughts

GNOG is one of those time-honored brands whose pandemic proof strategy has allowed it to maintain its lead at the top of the US casino gaming industry. Now that it is almost ready to finalize its merger with Lancadia Holdings II, things should be on the up and up for the brand from now on. It certainly hasn’t been an easy year for brick and mortar operations, and the Golden Nugget has certainly felt the financial pinch of limited operational capacity as the pandemic cases surge.

However, thank the heavens for its online operations and its sports betting offerings which are thriving and helping to keep the gaming giant afloat. As long as both online gaming and sports betting verticals continue to do well, GNOG should be able to keep its head above water until a vaccine or cure is found.

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