Sports betting giant DraftKings is acquiring Golden Nugget Online Gaming in an all-stock deal worth $1.56 billion. The company says that the acquisition will “enable DraftKings to leverage Golden Nugget’s well-known brand, iGaming product and existing combined database of more than 5 million customers.”
The new deal also encompasses a commercial agreement with Fertitta Entertainment, the parent company of Golden Nugget, the Houston Rockets, LLC and Landry’s LLC. DraftKing’s CEO said the deal “creates meaningful synergies such as increased combined company revenues driven by additional cross-sell opportunities, loyalty integrations and tech-driven product expansion as well as technology optimization and greater marketing efficiencies.”
Once integrated, the deal is expected to deliver synergies worth $300 million. It will allow preferred pricing access to Golden Nugget-owned properties, including casinos, as well as an exclusive commercial deal with the Houston Rockets for daily fantasy sports, sports book and iGaming. As part of the deal, DraftKings will form a new holding company New DraftKings, the new public company for both DraftKings and Golden Nugget Online Gaming.
The company recently reported 2Q21 revenue of $298 million, a 320 percent yearly increase, with monthly unique payers up by 281 percent, with an average of 1.1 million unique paying customers each month of the quarter.