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DraftKings makes live dealer casino studio cost-cutting decision; others could follow
DraftKings has confirmed it will shut down its live dealer casino studio in Atlantic City in January 2025 to curb rising costs.
The closure came as a result of a New Jersey WARN Act notice which will see the studio halt operations at the end of January, but the impact will be felt.
Yes, it is expected that 101 employees will be made redundant. However, the company is adamant that it will give affected staff a soft landing to cushion the blow of losing their jobs.
While layoffs are likely, it is still expected that players will be able to continue to enjoy live dealer games.
The live dealer market has experienced exponential growth over the past few years. This has been largely down to an online casino’s ability to replicate the feel and atmosphere of a land-based establishment.
Players crave realism and the ability to interact with a live dealer online only adds to the appeal.
That said, having a bespoke studio has become an extravagance for many operators, and rising overhead costs mean cuts have to be made.
It is thought burgeoning expenses have forced DraftKings to take the drastic measure, and it is believed Evolution is now likely to supply the technology for the soon-to-be-defunct DraftKings in-house studio.
More widely speaking, the US online casino industry is exploring ways to be more efficient with costs despite soaring revenues, and it seems like bespoke studios could well become a relic of the past.
This could also prompt other operators to follow DraftKings’ lead in the coming months.
BetMGM currently has a live dealer casino studio in Michigan, while FanDuel has one in Pennsylvania, and they could both take action.
DraftKings’ live dealer casino studio initially launched in 2022 which coincided with their takeover of Golden Nugget Online Gaming (GNOG).
As part of the acquisition package, DraftKings revealed its desire to integrate GNOG’s live dealer expertise, and GNOG has had a big role to play in fueling motivation for live dealer games.
While the closure of the bespoke studio may not necessarily spell good news for DraftKings, the bottom line is crucial and finding a way to be profitable in the long term should be the main goal for the iGaming giant.
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