Golden Nugget acquisition puts DraftKings in control of NJ online casino
What is the power of a transport of DraftKings shares worth $ 1.56 billion? Apparently powerful enough to take control of New Jersey’s lucrative online casino market. This is essentially what the acquisition of Golden Nugget will give DraftKings.
DraftKings announced the agreement Monday, which should add to the hype around its market value. In NJ terms, however, it’s the ultimate “if you can’t beat them, buy them” move.
Pending regulatory and shareholder approval, the transaction is expected to close during the first quarter 2022.
Golden Nugget Acquisition Details
About a year ago, Golden Nugget split its online gaming division into its own publicly traded company. Since, Golden Nugget online game (GNOG) continued to be among the leaders in iGaming in NJ.
For example, GNOG, run by online casino Golden Nugget, ranked second in terms of revenue with $ 27.6 million in victory for June of this year. State Gambling Law Enforcement Division breaks down monthly figures by licensee versus operator as in other jurisdictions. That being said, out of the five brands licensed by Golden Nugget, it’s PlayNJ’s understand that the namesake brand accounts for the bulk of revenue.
This is largely the reason why DraftKings estimates that GNOG will bring $ 300 million in new revenue to the company in the future.
For this new source of revenue, DraftKings parted ways with stocks it values at $ 1.56 billion. Founder of Fertitta Entertainment Tillman Fertitta will also join the DraftKings Board of Directors.
“Our 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,” said Jason robbins, CEO and Chairman of the Board of DraftKings. “This 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 press release makes no mention of immediate changes to any New Jersey online casino product. However, some hypothetical situations for the future seem more likely than others.
What this could mean for NJ online casino players
It’s easier now to rule out what isn’t likely to happen. Given the popularity of the Golden Nugget online casino in New Jersey, DraftKings is unlikely to abandon this brand entirely. Then there is DraftKings Casino, operating under the Digital stations license (ranked n ° 3 behind Borgata and GNOG).
This does not mean, however, that DraftKings will not integrate its brand in one way or another. For example, a future redesign of the app could include a new name like “Golden Nugget Casino by DraftKings”.
Now that DraftKings will control the two NJ iGaming properties, there could be a lot of integration between the brands. For example, DraftKings players might be able to use Crowns on Golden Nugget and Golden Nugget rewards might be useful on DraftKings platform.
Exclusive titles for either brand may also be available on both platforms in the future. Promotions for customers on the two apps could also be quite similar in the future. New Jerseyans have seen this type of multi-brand integration before with BetMGM Casino and Borgata Casino, which share ownership.
With GNOG now in the fold, DraftKings is poised to be NJ iGaming’s most formidable force. Now it’s up to the other players in the game to increase the bet or fold.