Golden Nugget subject of major acquisition
US online casino company, Golden Nugget Online (GNOG), is understood to be the subject of a takeover bid from Boston-based entertainment firm, DraftKings Inc in a deal that would value the casino firm at $1.56 billion.
It is an acquisition that will be an ‘all equity’ deal, with this being expected to complete in the first quarter of 2022. This is one of a number of pieces of business that DraftKings has done over the last couple of years and is rapidly expanding its reach across the world in the online gambling sector.
Golden Nugget is one of the biggest casino brands not just in the US but also around the world and while it has a number of land-based casinos across America - particularly the state of New Jersey, their online assets are also just as popular.
What does this mean for DraftKings?
Originally, DraftKings was a fantasy sports company that essentially radicalised the model by incorporating betting and gambling. Owned by Flutter Entertainment, which also has PaddyPower and SkyBet under their umbrella, this conglomerate has become one of the leading companies in the online gambling sector.
When they acquired DraftKings, they have used this brand as a way to help it build out its presence in the US, with this being a handy vehicle to help drive traffic and since then, the company has gone from strength to strength.
One of the major things that will come from this deal for DraftKings is to allow itself to cross-market effectively and there is likely to be a hope from the board that the brand can acquire a certain percentage of existing customers that are with Golden Nugget. This would also be expected to work the other way around as well.
Golden Nugget also has in excess of 500 different commercial entities, that include a number of restaurants such as The Oceanaire Seafood Room, Landry’s Seafood House, Joe’s Crab Shack, and Rainforest Cafe, plus many more. The marketing possibilities for DraftKings here are endless and it could certainly increase in perpetuity over the next few years.
A good move for DraftKings?
Without a doubt, Golden Nugget represents one of the best opportunities for DraftKings to really stake a claim on the US online casino market, which is set to become one of the biggest in the world over the next few years.
Already they have an impressive amount of expertise in addition to a wealth of experience in the industry, once you take into account the holding company’s other brands, such as PaddyPower.
While, there are a number of steps to take until the deal is complete, with the exact breakdown of the deal still being under wraps, this deal is certainly an exciting step forward for DraftKings and also Golden Nugget.
Written for Onlinecasino-Australia.com by Martin Jones - Published on 01-09-2021