DraftKings purchase of Golden Nugget Online Gaming almost complete
Sportsbook giant DraftKings expects to close its $1.56 billion acquisition of Tilman Fertitta’s Golden Nugget Online Gaming by the end of next month, but it’s unclear when the company will operate retail sportsbook and online in Nevada.
In a filing with the Securities and Exchange Commission on Friday, DraftKings said the companies “continue to seek the remaining gaming regulatory approvals necessary” to complete the transaction, which was announced last August.
DraftKings expects the all-stock deal to be completed by May 31.
The transaction includes a business deal with Fertitta Entertainment, the Texan billionaire’s holding company that controls businesses in the gaming, lodging, restaurant and entertainment industries, including Golden Nugget casinos in downtown Las Vegas. , Laughlin and three other states.
Fertitta owns 46% of Golden Nugget Online Gaming and will join the DraftKings board of directors once the deal closes. Fertitta is a cousin of Red Rock Resorts CEO Frank Fertitta III and Vice President Lorenzo Fertitta and is not involved with the company that controls gaming operator Station Casinos.
DraftKings has grown over the past four years from a daily fantasy sports provider to a sports betting giant operating retail and online sports betting in 17 of the 20 states with legal sports betting.
The company is considered the #1 or #2 sports betting provider in these markets.
One of the benefits DraftKings cited during the announcement was the rebranding of retail sportsbooks as DraftKings “in current and future Golden Nugget casinos.”
The Nevada Gaming Control Board has confirmed that Boston-based DraftKings has filed for the license.
“The DraftKings application is still ongoing,” the agency’s senior economic analyst Michael Lawton said in an email. “The Nevada Gaming Control Board does not expect this to be on the May agenda and the board will hear from it at a later date, but only when the investigation is complete.”
Since neither DraftKings nor Golden Nugget Online Gaming is licensed in Nevada, approval from state gaming regulators is not required.
A DraftKings spokesperson did not respond to an email seeking comment.
In October, DraftKings announced it was taking 90,000 square feet of office space inside the UnCommons complex in southwest Las Vegas to create a “tech hub” that will employ more than 1,000 workers.
The space will be the company’s second largest behind its Boston headquarters. At the time, DraftKings North America president Matt Kalish said the Las Vegas expansion “exemplifies” “the company’s investment in its people and the future of the business, as well as in the local community”. The location is expected to open in the next few months.
UnCommons is located just south of the 215 Beltway off Durango Avenue. DraftKings said its Las Vegas presence has grown 400% since opening its first office in January 2020 in the Town Square complex at the south end of Las Vegas Boulevard.
On Monday, DraftKings announced that it was one of six companies planning to launch regulated sports betting operations in Ontario, Canada, which is the first province to legalize single-game sports betting. The company also said it was building a sports betting site at Mashantucket Pequot Tribal Nation’s Foxwoods El San Juan Casino in Puerto Rico, expanding its existing relationship with the Connecticut tribe.
The news helped push DraftKings stock price up more than 7% on the Nasdaq on Monday. Shares of the company had fallen more than 20% since the start of the year.