DraftKings Shuts Down Live Dealer Games Studio in Atlantic City

In January 2025, DraftKings will officially close its live dealer studio located at the Golden Nugget in Atlantic City. Since the acquisition of Golden Nugget Online Gaming (GNOG) in 2022 for $1.56 billion, DraftKings has been operationally utilizing this studio to provide live dealer games to online players across New Jersey.

According to Next.io, a media outlet focused on iGaming, the company has submitted a Worker Adjustment and Retraining Notification (WARN) to the New Jersey Department of Labor and Workforce Development. This filing signifies the impending closure of its Golden Nugget iGaming studio, resulting in the loss of 101 jobs.

DraftKings expressed its commitment to aiding affected employees in securing new opportunities during this transitional phase, as stated by a company representative.

Transitioning to Third-Party Operations

Despite this significant change, DraftKings is not abandoning its interactive gaming offerings in New Jersey. Instead, they plan to shift their live dealer operations to third-party studios. In an official statement, DraftKings noted, “As we finalize our GNOG integration, effective January 31, 2025, our in-house live dealer services will transition to third-party studios in Atlantic City, ensuring no interruptions in our live dealer offerings.”

Typically, DraftKings Casino in New Jersey boasts around 70 live dealer games during non-peak hours, increasing to over 100 during evenings and weekends. Games available include popular choices like blackjack, roulette, baccarat, craps, Sic Bo, and poker.

While the specific new provider was not confirmed, speculation suggests that DraftKings may partner with Evolution Gaming, a leading supplier in the interactive live dealer market. Evolution recently announced plans to invest $75 million to create an iGaming campus in Atlantic City, aimed at distributing interactive game feeds to various operators in the area. Evolution already handles some of DraftKings’ live dealer tables and runs operations from locations such as Hard Rock and Ocean Casino Resort.

The Rise of Live Dealer Games

Live dealer online table games have surged in popularity for their realistic gameplay and the enhanced trust vendors instill in players compared to traditional computer-generated games. This demand has resulted in a robust market for live dealer options.

DraftKings’ Dominance in the iGaming Market

Recent revenue reports from the New Jersey Division of Gaming Enforcement indicate DraftKings leads the iGaming sector. By September, DraftKings achieved a remarkable gross gaming revenue of over $375.9 million from online players in New Jersey, surpassing its nearest competitor, FanDuel, which reported $360.4 million. Total statewide iGaming revenue for the first nine months of the year reached $1.73 billion, attributing a nearly 22% market share to DraftKings in the online casino segment.

Conclusion

In conclusion, while DraftKings is closing its live dealer studio at the Golden Nugget, it is transitioning to partner with third-party studios to continue offering competitive live gaming experiences in New Jersey. This strategic move, amidst significant market leadership in iGaming, highlights the evolving landscape of online casino gaming in the state.