DraftKings agrees to acquire Golden Nugget Online Gaming for $1.56bn
DraftKings has announced it will acquire Golden Nugget Online Gaming (GNOG) in an all-stock transaction, for an implied equity value of approximately $1.56bn.
In December 2019, DraftKings announced it will go public via a special purpose acquisition company (SPAC), also acquiring SBTech.
GNOG has since used that route to go public itself, and now the two are creating a gigantic US gaming combination.
DraftKings has thus far specialised in sports betting and daily fantasy sports, while GNOG is a specialist in online casino. Together, the two offer quite the online proposition.
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 optimisation 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, said: “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 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.”
DraftKings is reportedly now the subject of an SEC investigation into its SBTech takeover. With this new deal, however, the operator will be hoping to create a more positive news cycle for itself.
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