DraftKings Golden Nugget merger to provide ‘revenue uplift,’ CEO says

DraftKings DKNG,
has completed the $ 1.56 billion purchase of Golden Nugget Online Gaming in the company’s latest move to increase revenue and reduce costs.

“We anticipate that this acquisition will provide a significant increase in revenue through the use of our data-driven marketing capabilities and a dual-brand iGaming strategy, opportunities to improve gross margin and cost savings in external marketing and SG&A.” said DraftKings CEO Jason Robins in a statement. “I’m proud to welcome the Golden Nugget online gaming team to the DraftKings family.”

The move will allow DraftKings sports betting and online gaming to expand its offering of iGaming products and increase the new company’s marketing efficiency, according to the DraftKings announcement.

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DraftKings is buying the business from billionaire restaurant expert Tillman Fertitta. The acquisition is for the Golden Nugget online gaming business and does not include any real Golden Nugget casinos, which will continue to be owned by Fertitta Entertainment.

DraftKings has been in talks to acquire the online gaming part of the Golden Nugget business since 2021.

The acquisition comes amid a tumultuous year for DraftKings. In recent months, the company’s stock has plummeted to a new low of 52 weeks, prompting Robins to call sellers of his company’s stock as “regrettable.” more than any other decision you’ve ever made in your life. “

In February, DraftKings revealed that Robins ’total compensation in 2021 was $ 14.03 million, down from $ 236.83 million in 2020.

At various times, Robins has indicated that he is having a long-term vision with DraftKings.

“It simply came to our notice then. I think what we’re doing has been very consistent from day one, “Robins said in February.” I think the model works, and here we will play the long game. “

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The shares of DraftKings Inc. they fell 10.82% during trading on Thursday amid a broad market sell-off that caused the Dow to fall more than 1,000 points. DraftKings is down 72.86% over the past 12 months, compared to a 1.61% drop in the S&P 500 SPX.
Index during this same period.

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