DraftKings Sign Final Agreement For GNOG Acquisition

DraftKings has signed a final agreement to purchase Golden Nugget Online Gaming in an all-stock deal with an implied equity value of roughly $1.56 billion.

DraftKings said it will use the Golden Nugget name, igaming product experience, and current combined database of more than five million consumers as a result of the acquisition.

Fertitta Entertainment

DraftKings has also signed a commercial partnership with Fertitta Entertainment, the parent company of the Houston Rockets, Golden Nugget, and Landry’s, as part of the deal.

Market integrations, sponsorship assets with the Houston Rockets, an enhanced retail sportsbook presence, and the option to get market access on favourable terms through specific Golden Nugget casinos are all part of the plan.

DraftKings will also become the NBA franchise’s exclusive daily fantasy sports, sports betting, and igaming partner, with plans to build a sportsbook at the Toyota Center pending state and regulatory permissions.

Broader consumer base

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.”

Multi-brand approach

According to DraftKings, the acquisition will result in $300 million in synergies at maturity, with the business planning to implement a multi-brand approach that will promote cross-sell opportunities and generate increased market share and revenue growth.

DraftKings will undergo a holding company reorganisation as part of the deal, forming a new holding company called New DraftKings, which will be the public business for both DraftKings and GNOG going forward. At the end of the transaction, New DraftKings will be called DraftKings Inc.

The transaction is scheduled to occur in the first quarter of 2022, pending approval by Golden Nugget Online Gaming investors, regulatory clearances, and other normal closing conditions.

Tilman Fertitta is likely to offer written assent to the deal, which will be required by Golden Nugget Online Gaming investors.

Adding value to 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.”

joe profile pic

About Joe Kizlauskas

Joe is a seasoned iGaming copywriter and speaker who has been in the business since 2015. He's written more words on all elements of iGaming than he likes to remember, and he's contributed material to a number of well-known brands. Joe may be seen playing 5 a side, at the gym or playing games on his Playstation when he is not writing.