DraftKings has announced the completion of its $1.56bn acquisition of GNOG
US.- DraftKings has announced the completion of its acquisition of US online casino operator Golden Nugget Online Gaming (GNOG). It agreed the $1.56bn all-stock deal last August. The acquisition does not include Golden Nugget casinos, which will continue to be owned by Fertitta Entertainment.
Jason Robins, chairman and CEO of DraftKings, said: “Acquiring Golden Nugget Online Gaming gives us synergies across our business.
“We anticipate that this acquisition will provide meaningful revenue uplift by utilizing 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.”
Tilman Fertitta, chairman and CEO of Golden Nugget Online Gaming, added: “This will be an alliance unlike any other in the digital sports, entertainment and online gaming industry. 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.”
Synergies are expected to benefit DraftKings to the tune of $300m and revenue is expected to grow through cross-selling and cross-promotion opportunities to grow DraftKings’ customer base by engaging existing GNOG customers.
GNOG employees will be integrated into DraftKings’ business. Thomas Winter will transition to general manager of North America igaming from his previous role as president of Golden Nugget Online Gaming.