Atlantic City: DraftKings to shutter live dealer studio operations in January, over 100 employees affected

DraftKings will shutter its live dealer studio in Atlantic City early next year, several media reports indicate. The move will impact 101 employees, according to a filing with the New Jersey of Labor and Workforce Development. 

The Boston-based sports betting giant plans to close the studio, which operates out of the Golden Nugget Atlantic City casino, on January 31st, first reported Next.io. The studio allows customers to play online with a human dealer rather than computer software. The studio services DraftKings' iGaming operations only in New Jersey.

DraftKings will transition its online live dealer operations for the state to third-party studios located in the New Jersey gaming town, a company spokesperson told Business Journal in an emailed statement on Wednesday.

"We are supporting impacted employees to offer a smooth transition for as many as possible," the spokesperson told the above-cited publication, adding that the company's live dealer offerings will not be interrupted.

Golden Nugget Casino, Atlantic City

According to the report, DraftKings declined to share how many of the studio's employees are staying on with the company. The gaming company has run the live dealer studio since it finalized its acquisition of Golden Nugget Online Gaming in May 2022 in an all-stock deal valued at $1.56 billion.

At the time, DraftKings also entered into a separate commercial agreement with Tilman Fertitta's Fertitta Entertainment, the owner of the Golden Nugget Atlantic City, that included "access to large customer databases, market access rights, sponsorships," and more.

The spokesperson also added that DraftKings is in the midst of finalizing its integration of Golden Nugget Online Gaming into its business.

Launched in 2012, DraftKings operates its DraftKings Sportsbook in both online and retail formats in 28 states, Washington, D.C., and Ontario, Canada. It also has iGaming operations under the DraftKings brand in five states and Ontario and under the Golden Nugget Online Gaming brand in three states.

The sports betting operator also owns Jackpocket, the largest lottery app in the US, which it acquired for $750 million earlier this year. DraftKings has more than 4,000 employees around the globe. In addition to its Boston headquarters, the gaming company also has offices in New York; Hoboken, New Jersey; Houston, and Las Vegas.