Landcadia Holdings II To Purchase Golden Nugget Online Gaming

Tilman Fertitta and Landcadia Holdings II have announced an agreement to purchase real money online casino Golden Nugget Online Gaming from the US.

After closure, Landcadia II, a publicly traded special purpose acquisition company co-sponsored by Fertitta Entertainment and Jefferies Financial Group, plans to change its name into Golden Nugget Online Gaming and its Nasdaq trading symbol to GNOG.

Set to become only the country’s second-largest publicly traded online casino company, both parties are asserting expectations that the transaction will close in the third quarter of the year.

Rich Handler, co-chairman of Landcadia II and CEO of Jefferies commented: “GNOG is one of the best positioned companies to capitalise on this massive online gaming opportunity in the US. We at Jefferies couldn’t be more thrilled to partner with Tilman and bring this great opportunity to the public markets.”

In the fourth quarter of 2013, GNOG started operations in New Jersey and is celebrated as the first online gaming company to operate live dealers in the US. It posted net income of more than $11 m in 2019, after being profitable four years ago.

Fertitta will remain the chairman and CEO of GNOG and will have a controlling economic interest and a majority voting interest in the joint venture, with Thomas Winter, who was brought in to grow the online gaming business of Golden Nugget, continuing to serve as president.

Fertitta added:

“Golden Nugget is one of the most time-honored brands in the gaming business today. When customers hear the name Golden Nugget, they know they are dealing with a trusted online gaming business.

“Thomas and his team have done a remarkable job, are the best in the industry, and with this transaction, will have access to growth capital to allow for the rapid expansion of the business.”

The deal values the merged business at an projected pro forma enterprise value of approximately $745 m, or an additional $122 m of $2021 sales from 6.1x GNOG.