Potential Reasons For Golden Nugget’s Volatility In Michigan

Written By Corey Sharp on June 26, 2024
Gold nuggets flying up and down on a black background. Golden Nugget has been extremely volatile in the Michigan iGaming market. It's possible that's by design from parent company DraftKings.

Golden Nugget is a top-five operator in Michigan, in terms of lifetime revenue. However, 2024 has been a rollercoaster for the operator, which is rare to see in the industry.

Golden Nugget Casino Michigan reported its highest revenue total of the year last month, which came off its lowest total in April.

For an operator such as FanDuel or DraftKings to fluctuate between a few million dollars isn’t a huge deal, because of the size of the size of the companies. However, when Golden Nugget experiences those types of swings, it’s a lot more noticeable.

DraftKings owns Golden Nugget, which could explain the shifts in revenue.

Detailing Golden Nugget’s rollercoaster 2024

bar graph showing Golden Nugget Michigan online casino revenue for 2024

Golden Nugget is a strong operator, especially in Michigan, and has produced $235.6 million in lifetime Michigan online casino revenue, behind the market leaders of BetMGM, FanDuel, DraftKings and BetRivers.

In May, the platform generated $8.7 million, finishing sixth behind the above operators and Caesars. That is certainly considered a quality month for Golden Nugget.

Earnings haven’t always been that high, though. Here are the operator’s results in 2024:

  • January: $6.8 million
  • February: $4.6 million
  • March: $7.7 million
  • April: $2.9 million
  • May: $8.7 million

The revenue swings for a company such as Golden Nugget’s is incredibly rare. Our colleagues at PlayUSA might have a reason why.

DraftKings’ ownership could be contributing to volatility

bar graph showing DraftKings Michigan online casino revenue for 2024

DraftKings completed its acquisition of Golden Nugget in May 2022, as CEO Jason Robins said the transaction “gives us synergies across our business.”

With the acquisition, DraftKings has a number of options at its disposal with two top-notch platforms. DraftKings has also experienced some revenue swings in 2024:

  • January: $36.3 million
  • February: $36.9 million
  • March: $40.4 million
  • April: $38.5 million
  • May: $34.9 million

Because DraftKings produces much larger figures, the swings, and drops in consecutive months, don’t appear as drastic.

Alex Weldon of PlayUSA is suspecting that DraftKings “might be enticing its players to switch sites or diverting its promotional budget back and forth.” It also could be as simple as large jackpots were hit on Golden Nugget in February and April, specifically.

It’s tough to know exactly why the revenue swings are occurring with an operator speaking. Golden Nugget did not respond to PlayMichigan‘s request for comment.

Comparing Golden Nugget’s performance in New Jersey

bar graph showing Golden Nugget New Jersey online casino revenue for 2024

It could be very well possible that Golden Nugget’s revenue fluctuations can be a coincidence. But for an iGaming state as strong as Michigan’s, it’s certainly odd to see.

Golden Nugget also operates in New Jersey, as the state’s Division of Gaming Enforcement breaks down revenue by skin. The platform experienced similar ebbs and flows this year, but not as drastic:

  • January: $6 million
  • February: $5.5 million
  • March: $7.9 million
  • April: $6.7 million
  • May: $6.7 million

Perhaps New Jersey’s numbers provides some clarity that the strategy is deliberate, judging by revenue spanning from $5.5 million to nearly $8 million in consecutive months. However, Golden Nugget in New Jersey has been far more consistent than Michigan.

Time will tell whether this is a strategy DraftKings is employing in Michigan or it’s entirely coincidental. There are seven months left in 2024 to find out.

Photo by Shutterstock
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Corey Sharp

Corey Sharp joined Catena Media in 2022 and is the go-to expert for Michigan gambling. Born and raised in Philadelphia, PA, he previously worked for the Philadelphia Inquirer and NBC Sports Philadelphia as a sports journalist and content producer. In Corey’s role as Lead Writer for PlayMichigan, he works alongside a talented team of expert journalists and analysts to bring you the most comprehensive and accurate coverage of gambling news in Michigan. Corey’s contacts around the industry makes him a trusted source. Corey produces daily stories and features about the gambling space. Corey graduated from Holy Family University in Philadelphia with a bachelor’s degree in sports management.

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