DraftKings and Golden Nugget Online Gaming have agreed to an acquisition. The deal is worth $1.56 billion exclusively in stock and expects to close in early 2022. The board of directors at both companies approved the deal. It is awaiting further approval by Golden Nugget shareholders.
Assuming approval, the purchase helps DraftKings boost its casino gaming offerings with access to iGaming. The online operations will transition to the sports betting operator’s platform. Over five million users are part of the combined database in the merger.
Tilman Fertitta, CEO of Golden Nugget Online, joins DraftKings’ board of directors. He will hold DraftKings shares earned in the merger for one year.
“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,” Fertitta said in a press release. “Leveraging Fertitta Entertainment’s broad entertainment offerings and extensive customer database, coupled with DraftKings’ mammoth network makes this an unbeatable partnership.”
What The Deal Means For DraftKings
The new deal places one of the leading sports gambling companies at an advantage in the casino gaming space. They have increased exposure on an established platform. One of their competitors is also eliminated.
An additional agreement is made between DraftKings and Fertitta Entertainment. The holding company portfolio includes Golden Nugget Online, Landry’s Inc. (a hospitality corporation), and the Houston Rockets. DraftKings will be adding retail sportsbook operations at Golden Nugget casino locations. They also become an official betting and gaming sponsor of the Rockets.
“This deal creates meaningful synergies such as increased combined company revenues driven by additional cross-sell opportunities, loyalty integrations and tech-driven product expansion,” DraftKings CEO Jason Robins says in a press release, “as well as technology optimization and greater marketing efficiencies.”
DraftKings has been diversifying into various industry sectors, including sports media. In late March, the company acquired the Vegas Sports Information Network (VSiN) for an undisclosed amount. VSiN distributes video, audio, and written sports betting content on numerous platforms. Nearly a month later, former ESPN personality Dan Le Batard agreed to a $50 million deal.
AP Photo/Charles Krupa