DraftKings has disclosed the completion of its acquisition of Golden Nugget Online Gaming, with the all-stock transaction, which first detailed in August 2021, having an implied equity value of approximately $1.56bn.
It is noted that purchase does not include brick and mortar Golden Nugget casinos, which will continue to be owned by Fertitta Entertainment, however certain rebranding opportunities are to follow.
The pair expect this to occur at selected current and future retail sportsbook locations at the properties, which will become DraftKings branded sports betting entities.
This transaction, said DraftKings, will enable the group the leverage the Golden Nugget brand to broaden its reach into new customer segments and enhance the combined company’s igaming product offerings.
DraftKings will integrate GNOG employees across its business, including Thomas Winter, who will transition to General Manager of North America iGaming, from his previous role as President of the company.
“Acquiring Golden Nugget Online Gaming gives us synergies across our business,” said Jason Robins, Chair and CEO of DraftKings.
“We anticipate that this acquisition will provide meaningful revenue uplift by utilising our data-driven marketing capabilities and a dual brand igaming strategy, gross margin improvement opportunities, and cost savings across external marketing and SG&A. I am proud to welcome the Golden Nugget Online Gaming team to the DraftKings family.”
It is expected that $300m in synergies will be delivered at maturity, with DraftKings set to deploy a multi-brand approach in a bid to enhance cross-selling opportunities and drive increased revenue growth. The firm will also streamline marketing capabilities and look to capitalise on additional cross-promotion opportunities.
Furthermore, the Boston headquartered group also plans to bring GNOG onto its in-house technology to reduce third-party platform costs, operating expenses, and vendor costs.
“This will be an alliance unlike any other in the digital sports, entertainment and online gaming industry,” said Tilman Fertitta, Chair and CEO of GNOG.
“Now that the acquisition is completed, I look forward to what the future will bring for our combined company and am confident this relationship will be a huge success.”