DraftKings Acquires Golden Nugget Online Gaming For $1.56B

DraftKings and Golden Nugget Online Gaming revealed this morning that they have agreed on a deal for DraftKings to purchase Golden Nugget Online Gaming. The all-stock deal is valued at roughly $1.56 billion in equity.

This agreement is with Golden Nugget Online Gaming, but it will significantly alter the landscape of physical casino sportsbooks. Every sportsbook at Golden Nugget casinos will be rebranded under the DraftKings Sportsbooks banner. This transformation will apply to both existing and prospective sportsbooks within Golden Nugget establishments.

DraftKings sportsbooks will replace Golden Nugget casinos in Las Vegas and Laughlin. However, the timeline for this transition has not been established yet.

Deal includes casino, sportsbook, and steak

The agreement between DraftKings and Golden Nugget signifies more than merely obtaining an online casino. This acquisition provides DraftKings the opportunity to utilize the Golden Nugget as well as various Landry’s restaurant brand identities. Additionally, DraftKings has formed a partnership with Fertitta Entertainment, Inc, the holding company of the Houston Rockets, Golden Nugget, LLC, and Landry’s LLC.

The CEO and Chairman of the Board at DraftKings, Jason Robins, stated:

This deal generates significant synergies, including increased revenues for the combined company through additional cross-selling opportunities, loyalty integrations, and tech-driven product expansion. It also provides technology optimization and enhanced marketing efficiencies.

Tilman Fertitta’s company will grant DraftKings access to all Landry’s restaurants, Golden Nugget casinos, and the NBA team it owns.

This deal, particularly the Las Vegas component, is significant for those intending to bet on the DraftKings’ app. However, there is much more to this agreement for DraftKings.

DK gets access to Golden Nugget email database

This deal offers a range of benefits for DraftKings, starting with access to new markets for online and retail sportsbooks. Additionally, both companies will be able to tap into each other’s marketing databases and rewards programs.

DraftKings will gain access to the rewards programs of Golden Nugget casinos and Landry’s properties, as well as the ability to utilize the databases of Golden Nugget 24K Club and Landry’s Select Club.

The two rewards programs have over 5.5 million members combined, which is a significant boost for DraftKings expansion. However, these programs are considerably smaller compared to traditional casino rewards clubs.

To put it into perspective, MGM Resorts boasts over 55 million M Life Rewards members, while Caesars Rewards has an even larger membership. By amalgamating all of its rewards programs, DraftKings will edge closer to the traditional casino-sportsbook model that giants like Caesars and MGM Resorts provide.

Members enrolled in the DraftKings VIP rewards program can avail discounted hotel rooms at Golden Nugget casinos nationwide. With this arrangement, DraftKings can provide a comprehensive gaming experience that encompasses access to restaurants and casinos throughout the country.

Members of Golden Nugget rewards should also anticipate receiving marketing offers from DraftKings.

DraftKings In Las Vegas was only a matter of time

For several years, DraftKings has been planning its entry into the Las Vegas market. They started by hiring Johnny Avello from Wynn Las Vegas in 2018 and continued to expand their team in the city. Presently, DraftKings has established a 300-person office in Las Vegas.

In 2020, DraftKings made a significant move in Nevada by becoming the primary sponsor of the Center for Gaming Innovation at UNLV. This deal places DraftKings alongside some of the world’s largest gaming companies, further enhancing its reputation in the industry.

DraftKings took over the Vegas Sports and Information Network (VSiN) earlier this year. The company airs live every day from Circa and South Point casinos in Las Vegas.

A significant amount of investment has been made in Las Vegas despite lacking a retail or online presence within the state of Nevada.

The Nevada DraftKings experience

DraftKings operates as an online sportsbook. Their agreement with Golden Nugget will provide them with entry to retail sportsbooks in both Las Vegas and Laughlin. However, the DraftKings experience in Nevada will differ slightly from other markets.

Customers will have to continue visiting a Golden Nugget casino to open an account if the Nevada Gaming Control Board doesn’t revise the mobile sportsbook in-person signup regulations. Moreover, it is probable that a different sportsbook app will be required for customers in Las Vegas compared to the rest of the country.

Companies such as Caesars, MGM Resorts (BetMGM), and Wynn (WynnBet) provide different national apps compared to what they offer in Nevada. The apps available in Nevada do not offer as many promotions, they have distinct features, do not share a wallet, and their odds differ from those of their counterparts in other states.

A change that is currently taking place is that DraftKings sportsbooks will now be accepting bets on the Houston Rockets. Due to the existing ownership overlap, the Golden Nugget sportsbook is unable to provide odds on any games, players, or future events involving the Houston Rockets.