Wonders Sometimes Happen: Golden Nugget Records a Q2 Profit

Article by : Helen Sep 3, 2020

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Updated: Dec 21, 2021

It seems that the situation with the coronavirus turned out to be more severe than expected. Even after most gaming operators in the United States opened their doors to visitors, not all of them could get the desired results. Virtually all gambling establishments in Atlantic City saw record losses of $112 million in Q2 2020. Some gaming operators have managed to cover the losses caused by downtime. One of these casinos is Golden Nugget.

According to official figures, 9 land-based gambling houses and two online players could generate net earnings of $121.4 million within a couple of months after restarting the business.

The data suggests that gaming operators’ revenue dropped 85% from the second quarter of last year. Such indicators look much worse than the overall drop in revenue of all gambling casinos in the United States. The US casino market has witnessed a 78.8% drop on an annual basis. A similar situation has developed solely due to the need to close gambling establishments in mid-March. This means that the companies in standby mode could receive income exclusively through online gaming or sportsbook services. The Borgata casino is one of the leaders in terms of revenue growth.

The company managed to earn more than $30 million in the second quarter. Golden Nugget ranks second in Q2 revenue: it has managed to make over $25 million by offering online casino services. The third place of honor is taken by none other than Caesars Interactive Entertainment. Revenue figures for this casino reached $19 million. Net income was also incredibly low. Gambling houses faced a loss of more than $112 million, while gross operating income was $159.2 million in 2019. It seems that the Golden Nugget was the only operator that was in the red and showed a drawdown of only $3.5 million. Compared to other casinos, this data looks very optimistic. A popular Resorts Digital also reported marginal earnings of $7.7 million for Q2 2020.

The successful casino operator Borgata faced relatively high losses of $40.2 million. Hard Rock Atlantic City saw no less high loss figures, reaching to $18.3 million. Harrah’s ranked third in terms of losses among online operators with $15.1 million. Companies have to fight not only with a drop in demand for casino services but also with a 25% restriction on casino visits. Nevertheless, Atlantic City land-based gambling establishments still managed to earn $147.4 million. Gaming machines provided this income.

It is noteworthy that this figure corresponded to almost 50% of income for July last year. However, Borgata has a bearing upon these indicators. The operator opened its doors only in the fourth week of July. This was due to restrictions on the sale of drinks and food in gambling halls introduced by the state government. Though, this decision was nothing less than a way to show its thumbs-down towards authorities. The casino stated that it is not interested in breaking even as its income from food and beverages is high. Later, the brand informed that their decision was based on the time they needed to make a plan on how to protect guests from Covid-19.

The Golden Nugget also is one of the prime locations in downtown Las Vegas. The restaurant complex was built in the forties and has experienced many ups and downs until it became one of the most popular destinations in Sin City. The hotel complex consists of more than 2000 rooms, which have become a magnificent embodiment of modern style and convenience.