DraftKings Buys Golden Nugget Online Gaming for Near $ 1.6 Billion

Share Golden nugget online game The news surged nearly 50%. The company is managed by Tillman Fetita, the billionaire owner of the Houston Rockets NBA team.

High-value transactions are the latest development in the rapid growth of the world of online gambling.As more states Legalize sports betting Not only online casino games such as poker and blackjack, but also companies such as DraftKings are trying to attract gamblers of all kinds.

In an interview with CNN Business, DraftKings CEO Jason Robins said he believes that purchasing Golden Nugget Online Gaming will expand the company’s customer base and “fill the holes that make sense to us.” rice field.

According to Robins, online gaming brands make more sense to older customers who have more casino visitors and are also popular with women, but the average DraftKings bettor tends to be younger men. ..

“The Golden Nugget brand resonates more with casino viewers than DraftKings,” said Robins, who wants to encourage Golden Nugget online gaming customers to try out the company’s core sports betting products. He added that he was.

The “golden” era of gambling

As part of the Golden Nugget Agreement, DraftKings will also work closely with other parts of Fertita’s business empire, including laundry restaurant chains in Las Vegas and Atlantic City and the in-store Golden Nugget Casino.

DraftKings will now set priority prices in the Golden Nugget Casino sportsbooks, reducing the operating costs of sports betting operations there. If Texas legalizes sports betting and allows the team to run the casino, the company also plans to open a new sportsbook at the Toyota Center, home of the Houston Rockets in Fertitta.

Feltita, which owns approximately 46% of the shares of Golden Nugget Online Gaming, has agreed to hold the shares of the new DraftKings, which will be issued as part of the transaction, for at least one year after the merger is completed. Next 4-6 months.

But Robins said Feltita said he would be a long-term investor in DraftKings. To that end, Fertitta agreed to trade all shares rather than include cash in the transaction.

Verification from Fertitta is clearly positive for DraftKings, which aims to stand out in the increasingly competitive gambling market.

Last week, Penn National Gaming reported strong revenue and sales and announced plans to buy the Canadian-based sports app Score Media & Gaming for about $ 1.74 billion. Flutter will report the latest results on Tuesday.