- After Tillman Fertitta purchased New Jersey-based Golden Nugget Online Gaming—a major online sportsbook— it is now being traded publicly on the Nasdaq stock exchange.
- It is trading under Landcadia Holdings II (LCA) right now, but will later change its trading ticker to GNOG.
- Golden Nugget Online Gaming, citing huge market potential and the increasing popularity of online gambling, now plans to expand its business to become a leader in the U.S.’s online gambling and sports betting industries.
HOUSTON – Houston Rockets owner Tillman Fertitta’s online casino company is now trading publicly on the Nasdaq stock exchange.
This new company will be formed from Golden Nugget Online Gaming, which Fertitta purchased on June 29. The company is currently trading under Landcadia Holdings II (LCA) but plans to eventually readopt the Golden Nugget branding and change its trading ticker to GNOG.
Fertitta Entertainment will own a controlling 52 percent stake in the new company, which according to an SEC filing is valued at $745 million. This stake amounts to $387.4 million.
Anyone can purchase stock in Fertitta’s company, which is currently trading at $12.30 per share.
New Jersey, Golden Nugget’s primary state of operation, initially banned the company from offering NBA betting odds, but eventually relaxed that standard to simply ban bets on games involving the Rockets.
Golden Nugget also plans to expand into Michigan and Pennsylvania in 2021.
Tillman Fertitta is also the CEO of Landry’s, a multi-brand company that operates more than 600 restaurants, casinos, hotels, and entertainment venues throughout the country.
Business Potential Of Golden Nugget
Fertitta’s acquisition of Golden Nugget Online Gaming (GNOG) comes at a fortuitous time as American interest in online gambling has soared during the pandemic and major professional live sports just returned this week with the MLS is Back tournament in Orlando, FL.
The SEC filing of the GNOG acquisition specifically cites the coronavirus and widespread stay-at-home orders as a major force in accelerating the adoption of online gambling among American consumers.
Other areas highlighted in the filing include the capability of GNOG’s existing management team, the company’s existing brand recognition, and a “$20+ billion market opportunity”.
The online gambling market in the U.S. is projected to be worth over $100 billion by 2025, and GNOG could potentially seize a large portion of that market with its expansion plan.
In an interview with CNBC, Fertitta said that he expects the online gambling sector to expand everywhere in the U.S. because of the potential tax revenues.
With the NFL season on the horizon and ongoing public health concerns about large gatherings of people, GNOG looks primed for rapid growth in the near future.