LAS VEGAS (KLAS) — DraftKings will buy Golden Nugget Online Gaming in a stock deal valued at an estimated $1.56 billion, according to a joint announcement on Monday.
DraftKings gets a database of more than 5 million customers in the deal, as well as the brand recognition built by online efforts by Golden Nugget.
DraftKings also opens a new door, entering into a commercial agreement involving the NBA’s Houston Rockets, which fall under parent company Fertitta Entertainment, Inc.
“The commercial agreement will include marketing integrations, sponsorship assets with the Houston Rockets, an expanded retail sportsbook presence, and the optionality to obtain market access on favorable terms through certain Golden Nugget casinos,” according to a Monday news release. “DraftKings will also become the exclusive daily fantasy sports, sports betting, and iGaming partner of the Houston Rockets and intends to open a sportsbook at the Toyota Center, pending state legalization and regulatory approvals.”
Fertitta Entertainment also controls the Golden Nugget and seafood restaurant chain Landry’s.
Tilman Fertitta, the driving force behind the company, is third cousin to high profile Las Vegas businessmen Lorenzo and Frank Fertitta III. Frank Fertitta III is currently CEO of Station Casinos, and Lorenzo Fertitta made headlines with the purchase and subsequent sale of UFC — Ultimate Fighting Championship.
“Our acquisition of Golden Nugget Online Gaming, a brand synonymous with iGaming and entertainment, will enhance our ability to instantly reach a broader consumer base, including Golden Nugget’s loyal ‘iGaming-first’ customers,” said Jason Robins, DraftKings’ CEO and Chairman of the Board. “We look forward to Tilman being an active member of our board and one of our largest shareholders.”
Tilman Fertitta called it an “unbeatable partnership.”
“Together, we can offer value to our combined customer base that is unparalleled,” he said. “We believe that DraftKings is one of the leading players in this burgeoning space and couldn’t be more excited to lock arms with Jason and the DraftKings family across our entire portfolio of assets, including the Houston Rockets, the Golden Nugget casinos and Landry’s vast portfolio of restaurants. This is a strong commercial agreement for both companies.”
To facilitate the transaction, a new holding company — New DraftKings — will be created.