Online sports betting company DraftKings Inc. has announced that it has reached an agreement to purchase Golden Nugget Online Gaming Inc. in an all-stock deal worth $1.56B. The deal will see DraftKings form a new holding company called New DraftKings which will be the public firm going forward.
As part of the deal, DraftKings will enter into a commercial agreement with Fertitta Entertainment, Inc., the parent company of the Houston Rockets, Golden Nugget, LLC and Landry’s LLC.
Speaking of the company’s latest acquisition, Jason Robins, DraftKings’ CEO and Chairman of the Board said:
“Our acquisition of Golden Nugget Online Gaming, a brand synonymous with iGaming and entertainment, will enhance our ability to instantly reach a broader consumer base, including Golden Nugget’s loyal ‘iGaming-first’ customers. This deal creates meaningful synergies such as increased combined company revenues driven by additional cross-sell opportunities, loyalty integrations and tech-driven product expansion as well as technology optimization and greater marketing efficiencies. We look forward to Tilman being an active member of our Board and one of our largest shareholders.”
Tilman Fertitta, Chairman and CEO of GNOG added:
“This transaction will add great value to the shareholders as two market leaders merge into a leading global player in digital sports, entertainment and online gaming. Leveraging Fertitta Entertainment’s broad entertainment offerings and extensive customer database, coupled with DraftKings’ mammoth network makes this an unbeatable partnership. Together, we can offer value to our combined customer base that is unparalleled.
We believe that DraftKings is one of the leading players in this burgeoning space and couldn’t be more excited to lock arms with Jason and the DraftKings family across our entire portfolio of assets, including the Houston Rockets, the Golden Nugget casinos and Landry’s vast portfolio of restaurants. This is a strong commercial agreement for both companies.”
The commercial aspect of the deal will reduce DraftKings’ market access costs through preferred pricing arrangements with any Golden Nugget-owned properties.