DraftKings buys Golden Nugget Online Gaming on the stock exchange

LAS VEGAS (KLAS) – DraftKings will buy Golden Nugget Online Gaming in a stock market transaction valued at $ 1.56 billion, according to a joint announcement released on Monday.

DraftKings obtains a database of more than 5 million customers in the business, as well as the brand recognition built by Golden Nugget’s online efforts.

DraftKings is also opening a new door by signing a business deal involving the Houston Rockets of the NBA, who report to parent company Fertitta Entertainment, Inc.

“The business deal 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 select Golden Nugget casinos,” according to a Monday press release. “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.”

Fertitta Entertainment also controls the Golden Nugget and Landry’s seafood restaurant chain.

Tilman Fertitta, the driving force behind the company, is the third cousin of top Las Vegas businessmen Lorenzo and Frank Fertitta III. Frank Fertitta III is currently CEO of Station Casinos, and Lorenzo Fertitta made headlines with the purchase and subsequent sale of the UFC – Ultimate Fighting Championship.

“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 Golden Nugget’s loyal ‘iGaming-first’ customers,” said Jason Robins, CEO and President of DraftKings. advice. “We look forward to Tilman being an active member of our board of directors and one of our biggest shareholders. “

Tilman Fertitta called it “an unbeatable partnership”.

“Together, we can provide our combined customer base with unprecedented value,” he said. “We believe DraftKings is a major player in this growing space and we 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 the extensive portfolio of restaurants. This is a solid trade deal for both companies.

To facilitate the transaction, a new holding company – New DraftKings – will be created.

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