DraftKings Completes Acquisition of Golden Nugget Online Gaming

DraftKings Inc.

BOSTON, May 05, 2022 (GLOBE NEWSWIRE) — DraftKings Inc. (Nasdaq: DKNG) today announced that it has completed its acquisition of Golden Nugget Online Gaming, Inc. (“Golden Nugget Online Gaming” or “GNOG”) ( the “GNOG Acquisition”).

The acquisition of GNOG will, among other things, allow DraftKings to leverage the established Golden Nugget brand to expand its reach into new customer segments and enhance the combined company’s iGaming product offerings through the technology stack. vertically integrated from DraftKings and the unique capabilities of Golden Nugget Online Gaming – including Live Dealer. The acquisition of GNOG does not include physical Golden Nugget casinos, which will continue to be owned by Fertitta Entertainment.

“The acquisition of Golden Nugget Online Gaming provides us with synergies across our business,” said Jason Robins, President and CEO of DraftKings. “We expect this acquisition to generate significant revenue growth using our data-driven marketing capabilities and dual-brand iGaming strategy, gross margin improvement opportunities and cost savings on external marketing and general and administrative expenses I am proud to welcome the Golden Nugget Online Gaming team to the DraftKings family.

“This will be an unparalleled alliance in the digital sports, entertainment and online gaming industry,” said Tilman Fertitta, President and CEO of Golden Nugget Online Gaming. “Now that the acquisition is complete, I look forward to what the future holds for our combined company and I am confident that this relationship will be a huge success.”

DraftKings will integrate Golden Nugget Online Gaming employees across its business, including Thomas Winter, who will become General Manager of iGaming in North America, following his former role as President of Golden Nugget Online Gaming.

Synergies and strategic advantages of the acquisition

The acquisition of GNOG will bring significant benefits to DraftKings as well as expected synergies of $300 million upon maturity. DraftKings will deploy a multi-brand approach that will enhance cross-selling opportunities and drive revenue growth. Additionally, there will be multiple channels to achieve cost savings, including recognizing better returns on ad spend through marketing efficiencies, eliminating platform costs associated with migrating from current technology from Golden Nugget Online Gaming to DraftKings’ in-house proprietary platform and reducing G&A costs, such as vendor services and duplicate overhead. Additionally, DraftKings and Fertitta Entertainment plan to rebrand certain current and future retail sportsbook sites at Fertitta Entertainment-owned Golden Nugget properties as DraftKings sportsbook sites.

Combined Company Revenues

DraftKings expects revenue to increase from the additional cross-promotion opportunities, which should additionally grow DraftKings customer base by engaging Golden Nugget Online Gaming’s first existing iGaming customers. Anticipated additional revenue synergies include potential expansion of technology and gaming, such as live dealer offerings.

Marketing effectiveness

The acquisition of GNOG will allow DraftKings to gain efficiencies by streamlining marketing and capitalizing on additional cross-promotion opportunities. By deploying a multi-brand strategy and gaining access to Golden Nugget Online Gaming’s first integrated iGaming client, DraftKings expects to recognize increased returns on ad spend and higher LTV/CAC ratios.

Technology Optimization

DraftKings plans to integrate Golden Nugget Online Gaming into its in-house technology, which should save money by reducing third-party platform costs, operating expenses, and vendor costs for Golden Nugget Online Gaming. Additionally, once integrated, customers of both brands will use DraftKings’ technology and gain access to expanded product offerings and features, including in-house live dealers and first-party games, as well as overall enhancement of customer experience.

Advisors

Raine Group served as exclusive financial advisor to DraftKings, and Sullivan & Cromwell LLP served as legal advisor to DraftKings. Jefferies served as lead financial advisor to Golden Nugget Online Gaming, and White & Case LLP served as legal counsel to Golden Nugget Online Gaming. Spectrum Gaming Capital acted as financial advisor and White & Case LLP acted as legal advisor to the special committee of the board of directors of Golden Nugget Online Gaming. Latham and Watkins LLP served as legal counsel to Fertitta Entertainment.

About DraftKings
DraftKings Inc. is a digital sports gaming and entertainment company created to fuel the competitive spirit of sports fans with products ranging from everyday fantasy to regulated gaming and digital media. Based in Boston and launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman, DraftKings is the only vertically integrated sports betting operator based in the United States. DraftKings is a multi-channel provider of sports betting and gaming technology, powering sports and gaming entertainment for operators in 17 countries. The company operates iGaming in 5 states through its DraftKings brand, as well as Golden Nugget Online Gaming, an award-winning iGaming product and iconic gaming brand, in 3 states. DraftKings’ Sportsbook is live with US mobile and/or retail betting operations under 18 state regulations. DraftKings daily fantasy sports product is available in 6 countries internationally with 15 distinct sports categories. DraftKings is both an Official Daily Fantasy and Sports Betting Partner of the NFL, NBA, MLB, NHL, PGA TOUR and UFC, as well as an Official Daily Fantasy Betting Partner of NASCAR. Launched in August 2021, DraftKings Marketplace is a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFT drops and supports secondary market transactions. DraftKings also owns Vegas Sports Information Network (VSiN), a cross-platform streaming and content company.

Forward-looking statements

This press release may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. When used in this press release, the words “estimates”, “plans”, “expects”, “anticipates”, “anticipates”, “plans”, “intends”, “believes ”, “seeks”, “may”, “will”, “should”, “future”, “propose” and variations of these similar words or expressions (or negative versions of these words or expressions) are intended to identify the forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of DraftKings, which could lead to actual results or results. differ materially from those discussed in the forward-looking statements. These forward-looking statements include, but are not limited to, DraftKings’ expectations regarding future performance and anticipated financial impacts of the transactions, including expected synergies and opportunities related to the acquisition of GNOG. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. These factors are beyond the control of DraftKings and are difficult to predict. Factors that could cause such differences include, but are not limited to: (1) the outcome of any legal proceedings that may be brought against DraftKings and GNOG as a result of the completion of the GNOG Acquisition; (2) the inability to maintain the listing of the Class A common stock of DraftKings on Nasdaq following the acquisition of GNOG; (3) the ability to recognize the anticipated benefits of the Transactions, which may be affected by, among other things, competition and the combined company’s ability to grow and manage growth profitably and retain its key employees; (4) costs related to the GNOG Acquisition; (5) changes in applicable laws or regulations, particularly with respect to gaming, gambling, sports betting, fantasy sports and other similar activities; (6) the possibility that DraftKings will be affected by other economic, business and/or competitive factors, (7) market and supply chain disruptions due to the COVID-19 outbreak or other epidemics, pandemics or similar public health events; and (8) other risks and uncertainties stated from time to time regarding the transactions, including those identified in the filings of DraftKings and Golden Nugget Online Gaming with the SEC. The above list of factors is not exclusive. Readers should not place undue reliance on forward-looking statements, which speak only as of the date made. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the filings of DraftKings and Golden Nugget Online Gaming with the SEC. DraftKings undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

contacts
DraftKings
Media: [email protected]
@DraftKingsNews
Investors: [email protected]

Comments are closed.