DraftKings to Lay Off Over 100 Employees in Reported Live-Dealer Studio Shutdown

DraftKings among a list of companies on the 60-day New Jersey WARN Act notice announcing the upcoming workforce changes.

Brad Senkiw • News Editor

Oct 30, 2024 • 12:57 ET • 4 min read

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A major online sports betting and iGaming operator is laying off more than 100 employees in New Jersey amid changes to its live dealer studio.

DraftKings was among a list of companies on the 60-day New Jersey WARN Act notice, which stated that 101 employees in Atlantic City were part of the “workload affected” set for Jan. 31, 2025.

DraftKings executives were in New Jersey to announce the changes to staff on Monday, according to a NEXT.io report.

The move is part of a reshuffling as DraftKings is shutting down its New Jersey live dealer operation and transitioning to a third-party studio following integration with Golden Nugget Online Gaming (GNOG), according to a company spokesperson in the report.

DraftKings added that the gaming operator is “supporting impacted employees to offer a smooth transition” and that live dealer offerings won’t be interrupted during the change to GNOG.

The studio

DraftKings created the studio inside the Hard Rock Casino with partner Evolution in 2019 to expand live blackjack and baccarat offerings from 15 hours a day to 24 hours.

The DraftKings Casino currently offers live dealers, along with virtual slots, table games, and poker, in New Jersey and Pennsylvania. The gaming company also operates some form of its online casino site and app in Michigan, West Virginia, and Connecticut.

DraftKings recently had a job listing on ZipRecruiter.com for live dealers in Atlantic City that expired on Aug. 16.

The acquisition

The deal to acquire GNOG was reported in August 2021 with the completion of the purchase announced in May 2022.

GNOG launched the first online live dealer operation in the U.S., and it’s unknown how the acquired company has been integrated into DraftKings’ iGaming offerings.

“Acquiring Golden Nugget Online Gaming gives us synergies across our business,” Jason Robins, chairman and CEO of DraftKings, said two years ago. “We anticipate that this acquisition will provide meaningful revenue uplift by utilizing our data-driven marketing capabilities and a dual brand iGaming strategy, gross margin improvement opportunities, and cost savings across external marketing and SG&A. I am proud to welcome the Golden Nugget Online Gaming team to the DraftKings family.”