Bespoke Studio Live Dealer Games Out at DraftKings in New Jersey

Citing difficulties pulling in net iGaming revenue in New Jersey, management at DraftKings has decided to pull the plug on the live dealer games offered by its bespoke iGaming studios. The operator's bespoke platform is filled with custom live dealer games that have been customized for DraftKings iGaming customers in the state.

Effective January 31, 2025, DraftKings has announced it will be shutting down its bespoke live gaming studios. Those studios are currently being run out of a retail casino in Atlantic City, New Jersey. With the shutting down of these operations, the operator has admitted that they will be putting up to 101 employees out of work.

Citing a desire to ensure its customers will still have access to live dealer offerings, DraftKings will be looking to a software provider like Evolution Gaming. As part of that process, they will try to transition as many of the 101 bespoke studio employees as possible. This employment information was provided in compliance with the New Jersey WARN Act.

In a quote released to the press, a DraftKings representative stated:

"We are supporting impacted employees to offer a smooth transition for as many as possible. Our live dealer offerings will remain uninterrupted."

Why DraftKings is Taking Action Now

In New Jersey, online casino operators are earning billions in gross iGaming revenue. Unfortunately, that gross revenue is not translating into profitability. Without meaningful profits coming in, it has become hard for management to justify the extravagance of running a state-of-the-art live gaming studio.

Across the U.S. iGaming industry, cost-cutting has become the name of the game with survival in mind. That's evident in all seven (7) states where online casino gambling has been legalized. In New Jersey, there are more than a dozen online casino operators pulling from the pool of the state's online casino playing population. With that level of competition, it has become difficult for anyone to make a profit.

Will other operators have to take similar actions? Currently, Fanduel Casino in Pennsylvania and BetMGM Casino in Michigan are running similar bespoke live gaming studios. It's noteworthy that they followed DraftKings' lead in offering these services and might well follow the operator's decision to cease such operations.

The Desire for Live Online Casino Gambling Still Exists

The issue at hand has nothing to do with the popularity of live dealer online casino games. If anything the desire for this kind of online gaming is growing exponentially as technology continues to broaden the the iGaming experience. If customers want to play live online casino games, operators like DraftKings will have to make said games available.

That's likely why management at DraftKings will seek to seamlessly transition from its proprietary bespoke studio option to Evolution Gaming or perhaps Playtech's live gaming platforms. With a target date of January 31 of next year, there is plenty of time to get a new platform in place. They'll need to get it done to keep existing customers happy and satisfied with the operator's offerings.