DraftKings acquires Golden Nugget for $1.56bn
DraftKings has acquired Golden Nugget online gaming in a $1.56bn deal. With the acquisition, the sports betting operator has entered into a commercial agreement with the Houston Rockets of the NBA. The betting firm is set to launch a sportsbook at the Houston Rockets’ Toyota Center arena, pending approval from regulatory and legislation authorities in the state.
Draftkings, a betting giant and daily fantasy organization, has entered an agreement to acquire Golden Nugget (GNOG), an online gambling firm. The transaction is all-stock, and expected to be concluded in the first quarter of 2022. The conclusion of the stock transaction only has to be approved by GNOG’s stockholders.
The betting giant hopes to merge with the GNOG brand in order to leverage the GNOG’s iGaming products, and create a joint database of several million customers. Due to the nature and terms of the deal, DraftKings now has an agreement with Fertitta Entertainment. Fertitta Entertainment is the parent company of Golden Nugget and their resort business. The company also oversees GNOG’s entertainment corporation, restaurant, and is affiliated to the Houston Rockets.
With this deal, DraftKings is now the exclusive sports betting and iGaming partner of the Houston Rockets. Upon completion of the deal, DraftKings intends to commence a new strategy for its brands, and drive improved market share and income across its multiple brands simultaneously.
The company will undergo a new company registration upon conclusion of the acquisition deal. It will commence a new holding company reorganization to form a new holding company to be known as New DraftKings. New DraftKings will become the first point of reference for the merged brands DraftKings and GNOG. The plan is to eventually name the brand DraftKings Inc.
DraftKings believes acquiring Golden Nugget Online Gaming will improve its ability to reach wider audiences and users because of its popularity as an entertainment and iGaming brand. Part of this belief comes from Golden Nugget’s loyal iGaming customers that will be acquired with the merger.
The deal synergizes both companies, combines their revenues, and drives it up due to the opportunity created by increased cross-sales between the brands. The brands will become more integrated, and there will be product expansions driven by technology. It is also expected that the acquisition will improve the efficiencies of DraftKings and Golden Nugget Online Gaming alike, and better technology optimization is also expected.
DraftKings believes the deal will add a lot of value to the shareholders of both companies as the companies merge into a foremost player in the global digital entertainment, sports, and online gaming. They believe DraftKings’ considerably large network and Fertitta Entertainment’s offerings make the partnership quite the enviable one.
Fertitta Entertainment’s customer database is quite extensive with more than five million customers and the company also has a lot of entertainment offerings for users as well. Together, the brands hope to continue creating and offering incredible value to their combined customer base. Fertitta Entertainment also owns Landry’s Inc, and the Golden Nugget casinos.