Digital sports gaming company DraftKings Inc. on Monday (Aug. 9) announced its intent to purchase Golden Nugget Online Gaming in an all-stock transaction valued at roughly $1.56 billion. The merger will enable DraftKings to take advantage of Golden Nugget’s iGaming product and current database of more than 5 million customers.
In conjunction with the purchase, DraftKings has entered into a commercial agreement with Fertitta Entertainment, the parent company of the Houston Rockets, Golden Nuggets, LLC, and Landry’s LLC. As part of the agreement, DraftKings will become the exclusive daily fantasy sports, sports gaming and iGaming arm of the Houston Rockets. DraftKings plans to open a sportsbook at the Toyota Center, pending state and regulatory authorizations. The merger is expected to close in the first quarter of 2022.
As PYMNTS reported previously, DraftKings has developed other partnerships in an effort to increase its customer base. In March, the betting company announced a collaboration with DISH Network to enable DraftKings’ fantasy sports experiences available to DISH customers. With the joint effort, DISH customers could initiate bets or contest entries from their TVs and watch the live sports that pair with the bets or fantasy teams. The collaboration also incorporates the DraftKings app into the DISH TV Hopper platform.
Read more: DISH, DraftKings Partner On DVR Fantasy Sports Integration
As part of the Golden Nugget Online Gaming acquisition, DraftKings will go through a holding company reorganization to become New DraftKings, the public company for both DraftKings and Golden Nugget Online Gaming. New DraftKings will be renamed DraftKings Inc. at closing.
Golden Nugget Online Gaming stockholders would receive a fixed ratio of 0.365 shares of New DraftKings’ Class A Common Stock for each Common Share of Golden Nugget Online Gaming they currently hold. Tilman Fertitta, who owns roughly 46 percent of the equity in Golden Nugget Online Gaming, will continue to hold the DraftKings shares for a minimum of one year from the merger closing.
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