DraftKings’ $1.56 billion acquisition of Golden Nugget Online Gaming is nearing its completion. The sports betting giant now expects to close its deal with Tilman Fertitta’s business by the end of next month, according to a filing with the Securities and Exchange Commission last Friday.
“DraftKings and GNOG continue to pursue the remaining gaming regulatory approvals necessary to consummate the acquisition,” the filing reads. “Accordingly, DraftKings now expects the acquisition to be consummated on or prior to May 31, 2022, subject to the satisfaction or waiver of closing conditions.”
The millionaire all-stock transaction was initially announced in August last year. The commercial agreement, which involves Golden Nugget’s iGaming product and existing combined database of more than 5 million customers, was made with Fertitta Entertainment, the mogul’s holding company.
DraftKings also reached a separate commercial deal with Fertitta Entertainment across its asset portfolio, which includes the Houston Rockets and Golden Nugget. It features marketing integrations and sponsorship assets with the Rockets, an expanded retail sportsbook presence, and the option to obtain market access through certain Golden Nugget casinos.
Additionally, the sports gaming heavyweight will also become the exclusive daily fantasy sports, sports betting, and iGaming partner of the NBA franchise, including the opening of a sportsbook at the Toyota Center, pending legalization in Texas.
Upon the deal’s closure, Fertitta, who owns 46% of Golden Nugget Online Gaming, will join the DraftKings board. The GNOG acquisition is expected to bring synergies of about $300 million at maturity, the business said last year. The transaction was initially expected to close in the first quarter, but the businesses were ultimately unable to gain all necessary approvals by that date.
DraftKings said in an earlier report it intended to deploy a multi-brand strategy to enhance cross-sell opportunities and drive increased market share and revenue growth. Amid major opportunities for DraftKings is increasing its brand presence through the rebranding of retail sportsbooks to its name at current and future Golden Nugget casinos.
“Our acquisition of Golden Nugget Online Gaming, a brand synonymous with iGaming and entertainment, will enhance our ability to instantly reach a broader consumer base, including Golden Nugget’s loyal ‘iGaming-first’ customers,” said Jason Robins, DraftKings’ CEO and Chairman of the Board, at the time of the transaction announcement.
Jason Robins, DraftKings’ CEO and Chairman of the Board
“This 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,” he added, back in August.
The Nevada Gaming Control Board confirmed to The Nevada Independent that DraftKings has an application on file for licensing in the state. “The DraftKings application is still in process,” Michael Lawton, the agency’s senior economic analyst, told the news source.
“The Nevada Gaming Control Board does not anticipate that it will be on the May agenda and the board will hear it at a later date, but only when the investigation is complete,” he further added.
Original article: https://www.yogonet.com/international/news/2022/04/05/62088-draftkings-sets-may-31-deadline-for–15b-golden-nugget-online-gaming-acquisition
