DraftKings has agreed to buy Golden Nugget Online Gaming for about US$1.56 billion in stock, a deal that would boost the sports-betting operator’s online-casino-games offering, the companies stated.
The deal gives DraftKings an existing combined database of more than five million customers, according to the companies. By using the Golden Nugget brand, DraftKings hopes to reach a broader consumer base for online casino games, also known as iGaming, DraftKings Chief Executive Jason Robins said Monday, August 9.
Tilman Fertitta, Golden Nugget Online Gaming’s CEO who owns about 46% of the company, has agreed to continue holding DraftKings shares to be issued to him in the deal for at least a year after the transaction closes, they said. Mr. Fertitta will join the DraftKings board.
Golden Nugget Online Gaming operates in New Jersey and Michigan. The company stated that it has a catalog of online casino games in the New Jersey market with more than 800 titles. It is targeting Pennsylvania, Illinois, West Virginia and Virginia as potential states in which it plans to operate in the near future, according to the company’s annual report.
The companies stated they expect the deal to generate savings of US$300 million. They said they could cut costs by moving Golden Nugget Online Gaming’s current technology to DraftKings’ in-house platform, more efficient marketing, and cutting general and administrative costs including duplicative corporate overhead.
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