Golden Nugget became a winner when it topped the revenue list by becoming the proud owners of 31% of market revenues, which came as a shock to most analysts in the casino industry.
In times past, the online casino industry was dominated by giants like Caesars and Borgata. April 2015 saw Golden Nugget coming into its own by generating casino revenues worth $3 million.
Since the beginning of the company’s entrance into the New Jersey internet market, tough technical difficulties presented themselves, which caused the official launch to be delayed. Products that were set to be sold on the market had to suffer delay while the management team had to cancel the offering permanently. In addition, certain marketing campaigns had to be put on hold until the company’s products were up to “par” or up to customers standard.
However, to everyone’s surprise, the move to cancel the launch and marketing campaign proved to be a blessing in disguise and this setback gave Golden Nugget a competitive edge above those of its competitors. As one company spokesperson puts it, “As our competitors all launched marketing campaigns at the same time, they really struggled to acquire customers cost-effectively, and in most cases, the operators had pulled back from their marketing spend already”. He further stated, “That gave us the opportunity to achieve a disproportionately high share of voice and acceptable CPAs”.
Looking back at 2014 when Golden Nugget took the stage and started its marketing campaign, it quickly caught the attention of online casino players living in the New Jersey area. In quick succession, the company went from a 5% share to an 11% share increase in a five-month period.
Ultimate Gaming’s closure gave Golden Nugget the opportunity it needed to rank up its brand promotion and in the end generate badly needed revenue. When the company started its brand promotion, management made sure to target past Ultimate Gaming customers.
When Betfair, which is another online casino gaming company came on the scene, they agreed to transfer their online gaming operations into the hands of Golden Nugget. At that time, Betfair was raking in revenues of around 700k to 800k. This additional input gave Golden Nugget the strength to push from being a below average online casino company to a thriving online casino gaming company. The acquisition between Golden Nugget and Betfair, triggered an increase of Golden Nugget’s revenue to that of over 50%, which in turn caused the company’s market share to increase from 11% to 20% over a three months period.
With Golden Nugget’s popularity increasing, more online users began registering their account with them. This influx of new arrivals made the company’s profit growth increase substantially.