DraftKings to Acquire Golden Nugget Online Gaming in $1.6B All-Stock Deal DraftKings to Acquire Golden Nugget Online Gaming in $1.6B All-Stock Deal
Key Takeaways
  • DraftKings has entered into an agreement to purchase Golden Nugget Online Gaming (GNOG) in an all-stock deal valued at approximately $1.56 billion.
  • With GNOG, DraftKings gains a well-known traditional casino brand with a large portfolio of iCasino games and a database of more than five million customers.
  • The deal represents DraftKings’ largest acquisition to date.

DraftKings said it has entered into an agreement to purchase Golden Nugget Online Gaming (GNOG) in an all-stock deal valued at approximately $1.56 billion, combining one of the largest sports betting operators in the US with one of the nation’s largest online casino operators.

Under the deal, GNOG shareholders will receive 0.365 shares of the new company resulting from the merger for every share of GNOG they own. Shares of DraftKings closed at $51.98/share on the NASDAQ exchange on Tuesday. The recent range of DraftKings’ stock prices placed the value of the GNOG transaction.

The agreement, subject to regulatory approval and customary closing conditions, is expected to close in Q1 2022. It also calls for the temporary reorganization of DraftKings into a holding company called New DraftKings, which will form the publicly traded company for both DraftKings and GNOG going forward. The company name will revert to DraftKings post-closing.

“Our acquisition of Golden Nugget Online Gaming, a brand synonymous with iGaming and entertainment, will enhance our ability to instantly reach a broader consumer base, including Golden Nugget’s loyal ‘iGaming-first’ customers,” said Jason Robins, DraftKings’ CEO and Chairman of the Board in a recent press release.