Golden Nugget is a household name throughout the United States and its iGaming business is a well-established leader in New Jersey, the largest online gaming market in North America. However, I think a rebound in economic activity will be more important to the company’s story. Some may say no, because once brick-and-mortar locations are back up and running, who will want to gamble online? Admittedly, it’s part of the risk. I just talked extensively about the reopening of the economy. That’s pretty promising in the current environment we’re in. Revenue and operating income jumped more than 90% year over year, as the company logged another profitable quarter. His Golden Nugget Online Gaming entity recently came public via a SPAC offering.Ĭurrently operating in New Jersey, the company’s “ pandemic-proof business model keeps showing its resilience.” Those were the company’s words after reporting record third-quarter results. He owns the Golden Nugget Hotel and Casinos, a large portfolio of restaurants and the NBA’s Houston Rockets. The company is wholly owned by Tilman Fertitta. Golden Nugget Online Gaming is somewhere in the middle. There’s a lot of hope and optimism floating around for casino names like MGM and Wynn, as well as online sports betting platforms like DraftKings (NASDAQ: DKNG). Familiar with these properties as they may be, that’s not exactly what this stock is. Those who have been to Las Vegas or Atlantic City are likely familiar with Golden Nugget. At least enough to start traveling, gambling, vacationing and going back out to eat.īut what about until then? A Few Golden Nuggets It’s ambitious, but if achieved we will have a solid percentage of the country vaccinated by early Q2. Obviously that won’t cover America’s total population of roughly 330 million people, but it’s a start. The new White House Administration hopes to administer 100 million doses of the coronavirus vaccine in the next 100 days. By the second half, the hope is that we are booming, economically speaking. However, most are optimistic that by mid-year, we will be seeing a large increase in economic activity. Many economists and the Federal Reserve understand that 2021 won’t see an immediate turnaround. I don’t know how long it will take to vaccinate enough of the population to see a return to normal. It can be seen in booking patterns, management commentary from hotel operators and flight traffic. The gaming industry has growing pent-up demand, as consumers are looking for a return to normalcy.
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