The $1.56 billion purchase of Tilman Fertitta’s Golden Nugget Online Gaming by the world’s largest sports betting operator DraftKings has been completed, although it is not yet known when the business will start offering both retail and online sportsbooks in Nevada. DraftKings first announced plans to purchase Golden Nugget in August of 2021.
The firms continue to pursue the remaining gaming regulatory clearances necessary to complete the acquisition, which was first disclosed in August, according to a filing with the Securities and Exchange Commission made by DraftKings in May.
In the last four years, DraftKings has transformed from a daily fantasy sports supplier into sports betting juggernaut with retail and online sportsbooks operating in 17 of the 20 states where sports betting is allowed. In such markets, the company is regarded as either the top or second biggest sports betting provider.
The rebranding of retail sportsbooks at present and future Golden Nugget casinos under the DraftKings moniker was one of the advantages mentioned by DraftKings during the announcement.
Strategic Benefits of the Acquisition
The GNOG Acquisition will benefit DraftKings significantly, and at maturity, $300 million in synergies are anticipated. A multi-brand strategy will be used by DraftKings to improve cross-selling possibilities and spur revenue development.
Additionally, there will be numerous ways to cut costs, including, but not limited to, recognizing improved returns on advertising expenditures through marketing efficiencies, eradicating platform costs from moving Golden Nugget Online Gaming’s current technology to DraftKings’ in-house proprietary platform, and lowering G&A costs, such as vendor services and duplicative overhead. A few present and prospective retail sportsbook facilities at Fertitta Entertainment-owned Golden Nugget casinos will also likely change their name to DraftKings sportsbooks.
Combined Company Revenues
By attracting current Golden Nugget Online Gaming’s iGaming-first clients, further cross-promotional possibilities should complementarity build DraftKings’ customer base and boost revenue. Potential technological and gaming developments, such as Live Dealer offers, are expected to provide further revenue synergies.
With the GNOG Acquisition, DraftKings will be able to increase efficiency by simplifying its marketing efforts and taking advantage of more cross-promotional possibilities. DraftKings anticipates seeing higher returns on advertising investments and higher LTV to CAC ratios thanks to the implementation of a multi-brand approach and access to the built-in iGaming-first consumer of Golden Nugget Online Gaming.
DraftKings intends to migrate Golden Nugget Online Gaming to its technology, which should result in cost savings by lowering Golden Nugget Online Gaming’s operations costs, vendor costs, and third-party platform costs. In addition, once the two brands are combined, users of both will benefit from DraftKings’ technology and access to a wider range of products and services, such as in-house live dealers and exclusive games, as well as an overall enhanced customer experience.
Founded to stoke the competitive spirit of sports fans with daily fantasy, regulated gaming, and digital media gaming entertainment, DraftKings Inc. is a digital sports entertainment and gaming company. DraftKings, which has its headquarters in Boston and was founded in 2012 by Jason Robins, Matt Kalish, and Paul Liberman, is the only vertically integrated sports betting company in the United States.
Sports and gaming entertainment for operators in 17 different nations are powered by DraftKings, a multi-channel supplier of gaming and sports betting solutions. The business runs Golden Nugget Online Gaming, an iconic gaming brand, and award-winning iGaming product, in three states in addition to five states where it offers iGaming under its DraftKings brand.
Under laws in 18 states, DraftKings’ Sportsbook is operational in the United States with mobile and/or retail betting activities. With 15 different sports categories, DraftKings’ daily fantasy sports product is offered in 6 different overseas locations. In addition to being an official daily fantasy partner of NASCAR, DraftKings is also an official sports betting and daily fantasy partner of the NHL, PGA, MLB, TOUR, NFL, NBA, and UFC.
About Golden Nugget
One of the most recognizable names in American gaming is The Golden Nugget, which first opened a location in the 1940s. Golden Nugget’s online casino and sports betting platform has been riding the wave of the US online gaming popularity since 2020. Currently, the platform is accessible in New Jersey, Michigan, Virginia, and West Virginia.
Golden Nugget Online Gaming is a publicly traded business with nine years of experience. The company’s current areas of expertise include Hotels, Casinos & Gambling. Tilman J. Fertitta holds the titles of Chairman and CEO. Houston, Texas, USA is home to the organization’s headquarters. There are between 100 and 250 staff employed at the location. Golden Nugget Online Gaming’s yearly income ranges from $100 million to $500 million.