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DraftKings Inc. has agreed to buy Golden Nugget Online Gaming Inc. for approximately $ 1.56 billion in shares, a deal that would bolster the sportsbook operator’s online casino gaming offering, the companies said. .
The deal gives DraftKings an existing combined database of more than five million customers, according to the companies. By using the Golden Nugget brand, DraftKings hopes to reach a wider consumer base for online casino games, also known as iGaming, DraftKings chief executive Jason Robins said on Monday.
Golden Nugget Online Gaming shareholders will get 0.365 DraftKings shares. The deal is valued at $ 18.83 per share, a premium of around 53% over Golden Nugget Online Gaming’s closing price on Friday. Golden Nugget Online Gaming shares rose about 47% on Monday morning, while DraftKings’ shares were down about 1%.
Tilman Fertitta, CEO of Golden Nugget Online Gaming which owns around 46% of the company, has agreed to continue to own DraftKings shares that will be issued to him as part of the deal for at least one year after the deal closes. they declared. Mr. Fertitta will join the DraftKings Board of Directors.
Golden Nugget Online Gaming operates in New Jersey and Michigan. The company claims to have a catalog of online casino games in the New Jersey market with over 800 titles. It targets Pennsylvania, Illinois, West Virginia and Virginia as potential states in which it plans to operate in the near future, according to the company’s annual report.
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