DraftKings to Purchase Golden Nugget for $1.5 Billion

This story was published more than 2 years ago.

Online gaming group DraftKings announced this week that they've come to terms to purchase Golden Nugget Online Gaming for $1.56 billion.

The deal will be paid for in an all-stock transaction, with no cash or credit expenditures. With the purchase, DraftKings will strengthen its position as a major player in the American market. The company has a largely male customer base, and having the Golden Nugget brand will help them diversify to help get a stronger foothold with the female demographic.

DraftKings will also get access to Golden Nugget's player database, which has more than 5 million names within. Both companies have marketed themselves exclusively in the United States, with large television presences and multiple sponsorships.

Commenting on the deal DraftKings CEO Jason Robins noted: "Our demographics are largely male. We view this as an opportunity to take another iconic brand, this time in a casino state that's done very well (with) early market leadership in New Jersey, recent entries in other states, and Golden Nugget Online Gaming. We're very pleased to add the team, the brand and all their expertise. We believe this will help us attain igaming market share over the long term, including being more efficient with marketing and having tremendous synergies both on the cost and revenue side."

Golden Nugget CEO Tillman Fertita added: "There's going to be a lot of consolidation in this space in the next few years. We want to be a part of the winner, and there was no doubt this is where we wanted to be, with (DraftKings) strong balance sheet, liquidity analytics and expertise. They are building the best platform in the space to control content, and they have the best management team."

The agreement is subject to regulatory and shareholder approvals, and if approved is slated to be completed during the first quarter of next year.

About the author

Dustin Jermalowicz // News Editor
Dustin Jermalowicz
Dustin has a long-standing passion for gambling. He has been writing professionally on the subject and breaking industry news for Casino Listings since 2011. His favorite casino games include Blackjack, Poker, and Hi/Lo. A proud native of Detroit, Dustin currently lives in Michigan.