DraftKings Announces Layoffs of 101 Employees Due to Atlantic City Live Dealer Studio Closure

31.10.2024

DraftKings has decided to lay off 101 employees in New Jersey following the closure of its live dealer studio in Atlantic City.

Reasons for Closing the Atlantic City Studio

DraftKings made the strategic decision to close its live dealer studio in Atlantic City as part of its transition to outsourced services after integrating Golden Nugget Online Gaming (GNOG).

The studio, which had operated 24/7 from Hard Rock Casino since 2019, offered exclusive DraftKings tables primarily for blackjack. However, after acquiring GNOG, DraftKings opted to outsource its live dealer services to external studios in Atlantic City.

The company assures players that live dealer offerings will continue uninterrupted during this transition.

Significance of Golden Nugget Online Gaming Acquisition for DraftKings

DraftKings’ acquisition of Golden Nugget Online Gaming (GNOG) marked a pivotal step in its expansion, providing numerous benefits and introducing certain operational adjustments.

GNOG, as the first U.S. operator to launch a live dealer platform, brought valuable expertise and technology to DraftKings, enhancing its live dealer offerings and attracting new players. With GNOG, DraftKings gained access to a broader customer base and additional markets. By combining customer databases and implementing data-driven marketing strategies, DraftKings strengthened its revenue and market position.

The integration of GNOG also enabled cost optimizations, particularly in marketing and administrative functions.

While the acquisition brought substantial advantages, GNOG’s integration led to operational changes, including the closure of the Atlantic City live dealer studio and the subsequent layoffs.