- DraftKings and Golden Nugget Online Gaming will now be able to share assets.
- The companies expect synergies of $300 million at maturity.
- DraftKings will become the exclusive daily fantasy sports, sports betting, and iGaming partner of the Houston Rockets
LAS VEGAS - Notable online sportsbooks DraftKings, and Golden Nugget Online Gaming are now one in the same. Following a $1.6 billion stock deal, DraftKings went all in to purchase its former competitor.
“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, in a Monday morning press release.
The DraftKing empire continues to expand its online gambling platform thanks to a partnership with Fertitta Entertainment, the holding company for GNOG. The two companies come together under the name "New DraftKings" for the time being until eventually being rebranded DraftKings Inc.
Benefits Of The Merger
This merger will see the GNOG stockholders receive a "fixed ratio of 0.365 shares of New DraftKings’ Class A Common Stock for each Common Share of Golden Nugget Online Gaming they hold on the record date."
The companies expect synergies of $300 million at maturity.
DraftKings is also planning to advertise cross-sell opportunities via a multi-brand strategy to increase their market share and revenue growth. Now that the companies can share their assets, GNOG will now utilize DraftKings' proprietary platform instead of its former partner Scientific Games, and DraftKings will take advantage of preferred pricing with GNOG-owned properties and exclusivity deals with Fertitta Entertainment.
According to the press release, "DraftKings will also become the exclusive daily fantasy sports, sports betting, and iGaming partner of the Houston Rockets and intends to open a sportsbook at the Toyota Center, pending state legalization and regulatory approvals."
The Future Moving Forward
“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," said Robins.
This bold merger decision may prove beneficial to online sports betting players as well since the additional resources and assets shared between companies will certainly breed a better and more efficient sports betting experience for users.