DraftKings to buy Golden Nugget online casino for $1.56bn
DraftKings to buy Golden Nug...
Subscribe to Newsletter

DraftKings to buy Golden Nugget online casino for $1.56bn

10 August 2021
3336
2 min.
7
DraftKings to buy Golden Nugget online casino for $1.56bn

DraftKings & Golden Nugget

DraftKings (NASDAQ:DKNG) has decided to acquire Golden Nugget Online Gaming (NASDAQ:GNOG) for $1.56 billion, CNBC reports.

Through this acquisition, DraftKings will be able to attract more than 5 million Golden Nugget online casino players. Also, through this deal, the shareholders will have 0.356 shares in DraftKing.

Because of this news, Golden Nugget's stock rose nearly 48%, while DraftKings shares barely changed in value. DraftKings has a market capitalisation of $20.68 billion.

Crucial to the entire gaming industry are online casino customers. For example, the revenue generated by online casino customers is 7 times higher than that generated by sports betting customers.

Moreover, Tilman Fertitta, the CEO of GNO, owns 47 per cent of Golden Nugget Online (GNO).

During DraftKings' quarterly earnings report, DraftKings CEO Jason Robins said online gaming gives the company an opportunity to diversify its offerings to customers without being tied to sports seasons.

The benefits of the M&A deal for DraftKings will be $300 million in savings as the deal extends to the online platform and related technology, it will also reduce commission payments to third-party vendors and marketing costs. DraftKings is looking to diversify its revenues beyond fantasy sports and sports betting. To that end, it is making deals with sports bars, has launched an NFT trading platform and has partnered with data provider Genius Sports, which provides it with official data on NFL games and other sports.

And for Golden Nugget Online, the important point is that "Fertitta Entertainment's large selection of entertainment and large player database along with DraftKings makes this partnership mighty," Fertitta said. Also significant is the fact that, according to gambling analysts, the sale was the only option for Golden Nugget Online, as it has a large market share only in New Jersey and does not have the resources to compete sufficiently.

Persons2 and Companies5 in the news

Co-founder of DraftKings
1 place
General director of Fertitta Entertainment
2 place
DraftKings
2 place
CNBC
4 place
Nasdaq
5 place
Section:
Rating companies
Instagram
16 Mention
Tesla
14 Mention
Netflix
13 Mention
Ford Motor Company
11 Mention
JP Morgan Chase
10 Mention
Amazon
9 Mention
White House
8 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8127238318
Died this year
24256128
Born this year
59674368