DraftKings buys Golden Nugget Online Gaming in $1.56bn deal

DraftKings buys Golden Nugget Online Gaming in $1.56bn deal

Sign up to myFT Daily Digest to be the first to know about Gambling industry news.

US fantasy sports outfit DraftKings has agreed to acquire Golden Nugget Online Gaming for $1.56bn in an all-stock deal that more than doubles its valuation since it listed via a special purpose acquisition company last year.

The transaction will give DraftKings access to the online casino operator’s more than 5m customers and is expected to yield $300m in synergies, according to the companies.

DraftKings will create a new holding company in which GNOG shareholders will receive 0.365 shares for each common share they own. DraftKings has also agreed a separate commercial deal with Fertitta Entertainment, the parent company of Golden Nugget and basketball team Houston Rockets owned by billionaire Tilman Fertitta.

GNOG shares were up more than 47 per cent after the deal was announced.

Fertitta last year spun off GNOG through a Spac deal with Landcadia Holdings II, in which he served as co-chairman and chief executive, which valued the company at $745m. He still owns approximately 46 per cent of equity in GNOG and has agreed to hold on to DraftKings shares for at least a year after the deal closes. 

Tie-ups between companies targeting the rapidly growing