DraftKings buys Golden Nugget online casino in all stocks deal
Gold nugget, which has long been one of New Jersey’s most dominant online casino, is now part of the constant expansion DraftKings universe.
DraftKings will buy Golden Nugget Online Gaming (NASDAQ: GNOG) in a $ 1.56 billion deal.
âOur acquisition of Golden Nugget Online Gaming, a brand synonymous with iGaming and entertainment, will enhance our ability to instantly reach a larger consumer base, including loyal Golden Nugget ‘iGaming-first’ customers,â Jason Robins, DraftKings CEO and chairman of the board said in a press release Monday morning. âThis agreement creates significant synergies such as increasing the company’s combined revenue through additional cross-selling opportunities, loyalty integrations and technology-driven product expansion, as well as technology optimization. and greater marketing efficiency. We look forward to Tilman being an active member of our board of directors and one of our largest shareholders. “
The âTilmanâ in this case being Tilman Fertitta, owner of the Houston Rockets, NBA and Landry’s restaurant group, in addition to being the CEO of Golden Nugget Online Gaming.
“This transaction will add great shareholder value as two market leaders merge to become a leading global player in digital sports, entertainment and online games,” Fertitta said in the statement. âLeveraging Fertitta Entertainment’s vast entertainment offerings and extensive customer database, coupled with DraftKings’ massive network, makes this an unbeatable partnership. Together, we can provide our combined customer base with unmatched value. We believe DraftKings is a major player in this growing space and we couldn’t be more excited to be locking arms with Jason and the DraftKings family across our entire portfolio of assets, including the Houston Rockets, Golden Nugget casinos, and the extensive portfolio of restaurants. This is a solid trade deal for both companies.
Golden was platinum in NJ
Golden Nugget online casino has long been a dominant force in the New Jersey online gaming market, consistently finishing at # 1 in monthly revenue, although the company overtook Borgata in June, with revenues of online games of 27.6 million dollars against 34.3 for Borgata. million.
Golden Nugget also operates an online casino in Michigan, where it has grown steadily – albeit slowly -, finishing in fifth place for the month of June with $ 4.3 million in the profit of online games. And while the company is certainly growing in Michigan, it still lagged far ahead of market leader BetMGM, which ended the month with $ 33.7 million in gross revenue.
And while much has been done over the years about Golden Nugget’s massive success in New Jersey, an NJ-based player and space watcher known publicly as Captain Jack Andrews has pointed out that the numbers of Golden Nugget in New Jersey have long been mined. a bit, as they include skin offerings with a handful of other casinos.
The acquisition of DK / GNOG could trigger a reshuffle of the skins of NJ’s online casinos.
Those lofty online casino numbers that everyone lists GN every month include skin deals with FanDuel’s Stardust and FanDuel casino as well as Sugarhouse Casino in NJ.
– Captain Jack Andrews (@ capjack2000) August 9, 2021
Where are the rockets?
In the press release announcing the deal, DraftKings noted that cost savings would be realized in part as Golden Nugget now uses DraftKings in-house technology to manage the operation. Gold nugget now uses science games like its technological partner.
In addition, DraftKings is entering into a âdeep partnershipâ between the company and Fertitta Entertainment. The Release Notes DraftKings’ agreement with Fertitta Entertainment will include “marketing integrations, sponsorship assets with the Houston Rockets, an expanded retail sports betting presence, and the ability to gain market access on favorable terms through some Golden Nugget casinos. DraftKings will also become the exclusive partner of the Houston Rockets’ daily fantasy sports, sports betting and iGaming and intends to open a bookie at Toyota Center, pending state legalization and regulatory approvals.
In addition, this agreement will see DraftKings undergo a holding company reorganization to form a new company called âNew DraftKingsâ which will become the upcoming public company for DraftKings and GNOG. Once all is said and done, the company will be renamed DraftKings Inc.
An interesting wrinkle on all of this is the stance of New Jersey gaming regulators and the legislature when it comes to allowing New Jersey residents to bet on the Houston Rockets. As it is, New Jersey punters cannot bet on Rockets games via the Golden Nugget sports betting app. It is not clear at this point whether DraftKings users will be able to bet on the Rockets.
In pre-market, the GNOG rose from $ 6.45 to $ 18.72. DraftKings (DKNG) stock was also higher, trading at $ 53.37, up 3.5% from Friday’s close.