The leading online gaming company had “rapid, profitable growth” in 2020 with revenue increasing by 63% YoY, as per a preliminary report. The company added Kevin Vonasek as its new VP of corporate development, who will lead GNOC’s ambitious expansion plans.
2020’s Highlights are IPO, $100M in GGR and New Markets
Houston-based Golden Nugget Online Gaming (GNOG) has published its first preliminary earnings report for the twelve months ended December 31, 2020. The unaudited estimates show that total revenue is expected to stand between $90 and $91 million compared to $55.4 million in 2019, or a 63% year-on-year (YoY) increase.
The company went public at the end of December after merging with the special purpose acquisition company, Landcadia Holdings II. Billionaire Tilman Fertitta started the “blank check” company last year in partnership with New York-based Jefferies Financial Group and remained chairman and CEO of the combined company.
The operator anticipates growth in gross gaming revenue (GGR) as well, from $60.9m in 2019 to $101 million – $102 million in 2020. Some $79 million of this GGR corresponds to actual gaming revenue, while the remaining $22 million comes from “progressive jackpot accruals and promotional credits wagered”.
The company expects EBITDA for 2020 in the range of $23 million to $24 million, a 38% YoY increase compared to $17.6 million in 2019. The figure was between $28 million and $29 million prior to realizing $4 million to $5 million in costs related to the business combination with Landcadia Holdings II. Excluding the business combination costs, EBITDA growth amounts to about 62%.
“We are very pleased with yet another year of rapid and profitable growth. 2020 was a transformational year for GNOG, which went public, reached $100m in GGR and signed market-access agreements in multiple states.”GNOG CEO Tilman Fertitta
Player Acquisition and Revenue Up Quickly in Michigan
On January 22, Golden Nugget Online Gaming started its online business in Michigan, when the state officially launched online sports betting and casino gambling. Fertitta highlighted that the operator is quickly increasing its player base and revenue with nearly $2 million dollars in daily casino wagers shortly after launching the company’s marketing campaign. The CEO of GNOC expects the company’s business in the Great Lakes State to exceed the initial expectations as Michigan is embracing online gaming at a rapid pace.
GNOG also announced the appointment of online gaming industry veteran Kevin Vonasek as the operator’s new vice president of corporate development. Vonasek will focus on the expansion across every US iGaming market and will work on other strategic initiatives as well.
Vonasek previously held the position of chief product officer Americas at NYX Gaming Group and VP of business development Americas at Scientific Games Digital.