DraftKings buys Golden Nugget Online Gaming for nearly $1.6 billion

Shares of Golden Nugget Online Gaming skyrocketed practically 50% on the information. The corporate is managed by Tilman Fertitta, the billionaire proprietor of the Houston Rockets NBA staff.

The high-priced deal is the most recent growth within the fast progress of the web playing world. As extra states legalize sports betting in addition to on-line on line casino video games similar to poker and blackjack, corporations like DraftKings try to draw gamblers of every kind.

DraftKings CEO Jason Robins mentioned in an interview with CNN Enterprise that he thinks shopping for Golden Nugget On-line Gaming will assist enhance the corporate’s buyer base and “fills a significant gap for us.”

The web gaming model means extra to older clients who’re extra frequent on line casino guests and can also be extra fashionable with girls, Robins mentioned, whereas the common DraftKings bettor tends to be a youthful man.

“The Golden Nugget model resonates greater than DraftKings for the on line casino viewers,” Robins mentioned, including that DraftKings hopes to encourage Golden Nugget On-line Gaming clients to strive the corporate’s core sports activities betting merchandise.

A “golden” age of playing

As a part of the Golden Nugget deal, DraftKings may even work extra intently with different components of Fertitta’s enterprise empire, which incorporates the Landry’s restaurant chain and brick and mortar Golden Nugget casinos in Las Vegas and Atlantic Metropolis.

DraftKings will now have most popular pricing offers at sportsbooks within the Golden Nugget casinos that may scale back prices to function sports activities betting operations there. The corporate additionally plans to open a brand new sportsbook within the Toyota Middle, house of Fertitta’s Houston Rockets, if Texas legalizes sports activities betting and permits groups to function casinos.

Fertitta, who owns about 46% of Golden Nugget On-line Gaming’s inventory, has agreed to carry on to new DraftKings shares that can be issued as a part of the deal for at least one yr following the closing of the merger, which might happen throughout the subsequent 4 to 6 months.

However Robins mentioned Fertitta has instructed him he plans to be a long-term investor in DraftKings. To that finish, Fertitta agreed to an all-stock transaction fairly than together with money within the deal.

The validation from Fertitta is a transparent constructive for DraftKings, which is seeking to stand out in an more and more aggressive playing market.

Penn Nationwide Gaming reported strong earnings and gross sales final week and in addition introduced that it plans to purchase Rating Media & Gaming, a Canadian-based sports activities app, for about $1.74 billion. Flutter will report its newest outcomes on Tuesday.