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DraftKings Completes Acquisition of Golden Nugget Online Gaming

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DraftKings Completes Acquisition of Golden Nugget Online Gaming

 

DraftKings Inc. announced the completion of its acquisition of Golden Nugget Online Gaming, Inc. (“Golden Nugget Online Gaming” or “GNOG”) (the “GNOG Acquisition”).

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

“Acquiring Golden Nugget Online Gaming gives us synergies across our business,” said Jason Robins, Chairman and CEO of DraftKings. “We anticipate that this acquisition will provide meaningful revenue uplift by utilizing our data-driven marketing capabilities and a dual brand iGaming strategy, gross margin improvement opportunities, and cost savings across external marketing and SG&A. I am proud to welcome the Golden Nugget Online Gaming team to the DraftKings family.”

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

DraftKings will integrate Golden Nugget Online Gaming employees across its business, including Thomas Winter, who will transition to General Manager of North America iGaming, from his previous role as President of Golden Nugget Online Gaming.

Synergies and Strategic Benefits of the Acquisition

The GNOG Acquisition will deliver significant benefits to DraftKings as well as expected synergies of $300 million at maturity. DraftKings will deploy a multi-brand approach that will enhance cross-selling opportunities and drive increased revenue growth. In addition, there will be multiple channels for cost savings by, among other things, recognizing enhanced returns on advertising spending through marketing efficiencies, eliminating platform costs from migrating Golden Nugget Online Gaming’s current technology to DraftKings’ in-house proprietary platform, and reducing G&A costs, such as vendor services and duplicative overhead. Additionally, DraftKings and Fertitta Entertainment expect to rebrand certain current and future retail sportsbook locations at Fertitta Entertainment-owned Golden Nugget properties into DraftKings sportsbooks.

Combined company revenues

DraftKings expects revenue to increase from additional cross-promotion opportunities, which would be expected to complementarily grow DraftKings’ customer base by engaging existing Golden Nugget Online Gaming’s iGaming-first customers. Additional anticipated revenue synergies include potential technology and game expansion, such as Live Dealer offerings.

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Marketing efficiencies

The GNOG Acquisition will allow DraftKings to drive efficiencies by streamlining marketing and capitalizing on additional cross-promotion opportunities. By deploying a multi-brand strategy and accessing Golden Nugget Online Gaming’s built-in iGaming-first customer, DraftKings expects to recognize increased returns on advertising spending and greater LTV to CAC ratios.

Technology optimization

DraftKings plans to bring Golden Nugget Online Gaming onto its in-house technology, which is expected to deliver cost savings by reducing Golden Nugget Online Gaming’s third-party platform costs, operating expenses, and vendor costs. Additionally, once integrated, customers of both brands will utilize DraftKings’ technology and have access to expanded product offerings and features, including in-house live dealer and proprietary games, as well as an overall improvement in the customer experience.

Advisors

Raine Group served as exclusive financial advisor to DraftKings, and Sullivan & Cromwell LLP served as legal counsel 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 counsel to the Special Committee of Golden Nugget Online Gaming’s board of directors. Latham and Watkins LLP served as legal counsel to Fertitta Entertainment.

Compliance Updates

Play’n GO announces Delaware license award

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Play'n GO announces Delaware license award

 

Legendary studio’s games now live with Rush Street Interactive brand BetRivers in US state

Play’n GO, the world’s leading casino entertainment provider, has today announced the receipt of a sixth US state license, this time in the state of Delaware.

Having entered the US market in 2022, Play’n GO has gone live in West Virginia, New Jersey, Pennsylvania, Michigan, Connecticut, and now Delaware, where some classic Play’n GO titles, such as Piggy Blitz will now be available to BetRivers players in the state affectionately known as the First State.

Play’n GO added Pennsylvania and Connecticut to its list of regulated markets in 2024, and have a publicly stated goal of being active in every regulated market in the world, a goal that has seen the Swedish gaming giant release a portfolio of over 350 premium games in over 35 regulated markets to date.

Anna Mackney, US Head of Region at Play’n GO added “It’s fantastic to begin the year by adding yet another new regulated market in the US, this time in the shape of Delaware. Our expansion into the state marks yet another significant step in our US growth strategy. Play’n GO continues to lead the charge in regulated markets, and we are committed to delivering our premium content to players across the country.

“We’ve already established an excellent relationship with BetRivers across the United States and we are confident that our partnership will continue to be mutually beneficial to both businesses as we enter yet another new market together. US players have clearly demonstrated their demand for our games, and we will continue to deliver.”

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Rebranded VSiN Las Vegas 1230 The Game Brings 24-7 Sports Betting Talk Format to Vegas Radio Listeners Just Ahead of Biggest Sports Betting Day of the Year

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Lotus Las Vegas is expanding its partnership with VSiN, The Sports Betting Network, to deliver 24-7 sports betting content to Las Vegas radio listeners. The rebranded VSiN Las Vegas 1230 The Game provides sports enthusiasts the expert sports betting insights and analysis they need – all straight from the floor of one of the biggest sportsbooks in the world at Circa Resort and Casino, stationed in the heart of downtown Las Vegas.

“We are thrilled to announce the rebranding of 1230 The Game as VSiN Las Vegas 1230 The Game, solidifying our long-standing partnership with VsiN. As one of the first stations to bring VSiN content to terrestrial radio, we’ve always shared a commitment to delivering the best in sports betting insights to our listeners. This next step underscores our dedication to providing cutting-edge content and highlights the growth and impact of VSiN in the world of sports broadcasting,” said Natalie Marsh, General Manager at Lotus Broadcasting.

VSiN Las Vegas 1230 The Game delivers news, analysis, and insights that bettors need to make informed wagering decisions. As the voice of the sports betting industry, VSiN delivers the most credible, actionable information to sports fans and betting enthusiasts by tapping the industry’s most knowledgeable sports betting experts, legendary book makers, former athletes, and league executives.

“Like everyone else involved in this partnership, I’m very excited to see the rebranding of 1230 The Game become officially VSiN Las Vegas 1230 The Game. We have had a lengthy partnership with VSiN and all this does is continue to grow it and take it to the next level. Excited about what’s to come next with the dedication from us and VSiN, forming VSIN Las Vegas 1230 The Game,” said Q Myers, Las Vegas Sports Network Program Director and On-Air Host on Raider Nation Radio 920.

“Lotus has been an amazing partner in helping VSiN build a passionate local following, hungry for credible sports betting information. It’s that passion, and the excitement of being at the center of the sports and entertainment capital of the world, that we try to capture for our audience in the rest of the country. We’re excited to kick off this relationship in time to bring non-stop coverage of the Big Game to our local listeners,” said Brian Musburger, president and chief business officer at VSiN.

This 24-7 sports betting programming launches just ahead of the single biggest sports betting event of the year and VSiN will deliver non-stop coverage leading into Super Sunday, including reports directly from the action in New Orleans. VSiN personalities Adam Schein, John Hansen, and Jonathan Von Tobel will do shows live on location.

The network will showcase insights from all of its experts, professional bettors and bookmakers on Super Sunday with live coverage from Las Vegas beginning at 5 a.m. Pacific and continuing through midnight.

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Robinhood Launches “Pro Football Championship” Contracts

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Robinhood Derivatives LLC (RHD) has launched event contracts for the Pro Football Championship. The trading platform launched the event contracts on Monday to let U.S. customers wager on the outcome of the Super Bowl clash, seeking to tap into the betting mania around one of the most iconic sporting events in the country.

“Robinhood’s mission is to democratize finance for all. With an emerging asset class like event contracts, we recognize an opportunity to better serve our customers as their interests converge across the markets, news, sports, and entertainment,” the company said.

Available in all 50 states through KalshiEX LLC, a regulated exchange, the Pro Football Championship event contract gives eligible customers the power to trade on the outcome of the big game.

Event contracts for the Pro Football Championship leverage the power and rigor of financial market structure to facilitate greater liquidity, transparency, and price discovery.

The Pro Football Championship event contract lets customers trade one of two different event contracts based on their prediction for “who will win” between Kansas City or Philadelphia. To participate, customers must download the latest version of the app, and apply and meet certain criteria to be approved for a RHD account.

Event contracts for the Pro Football Championship follows the launch of the Presidential Election Market last October, which enabled customers to trade event contracts through RHD based on their prediction for “who will win the 2024 presidential election.”

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