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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.

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.

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Xpoint Launches Groundbreaking New Product to Reduce Geolocation Costs for Operators

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Trust Mode feature reduces unnecessary location checks by over 20%

Xpoint, a leader in geolocation security solutions, has unveiled its proprietary Trust Mode feature, a patent-pending product that allows online gaming operators to realize previously unattainable efficiencies while remaining compliant with all state regulations and enhancing player satisfaction.

Trust Mode is a product feature that decreases geolocation checks while complying with state-mandated check frequencies by minimizing location checks when a player is connected to a residential or office WiFi, even if they are near the border. Results have shown that Trust Mode reduces geolocation service checks by over 20%, allowing Xpoint customers to realize significant cost savings compared to legacy industry technologies.

“Trust Mode is a clear example of how competition fosters innovation,” the Chief Executive Officer for Xpoint, Manu Gambhir, said. “There is no need to frequently re-check the location of a bettor connected to Wi-Fi at their home despite being located near a state border.

“As well as benefiting operators, end users also benefit from Trust Mode as their battery usage will decrease due to the operator’s ability to reduce the number of location checks for players without accuracy being sacrificed. This technology will serve as a game-changer for operators looking to get the most out of their geolocation service provider.”

Xpoint is licensed and authorized in 20 states and the District of Columbia across its current customer portfolio including names such as Bet365 and PrizePicks. Trust Mode delivers efficiencies to an industry that has remained largely static due to previously low levels of competition. Trust Mode saves iGaming operators money while enhancing user experience. Roll-out for the service is expected later this year.

The company’s flagship geolocation platform for iGaming, Xpoint Verify, is an advanced toolset for geo-compliance. The service is focused on being the most accurate, allowing players in permitted locations and denying all others including those attempting to spoof their location. Xpoint Verify detects and prevents fraud while providing valuable marketing insights to operator customers.

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SBC Summit North America: Stages, Sessions, and Speakers Highlights

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SBC Summit North America: Stages, Sessions, and Speakers Highlights

 

The 2024 SBC Summit North America is set to bring a diverse array of stages, sessions, and esteemed speakers, in an event that promises to deliver numerous opportunities for learning, networking, and collaboration. Let’s delve into the highlights from each day of this groundbreaking summit:

Day 1: The Prelude to Insight

As the curtains rise on the inaugural day of the summit, attendees are greeted with a plethora of engaging sessions spanning regulatory compliance, responsible gambling initiatives, and the latest technological innovations. The stage is set for dynamic discussions and thought-provoking insights as industry leaders converge to explore the intersection of regulation and commercial growth.

Day 2: Navigating the Regulatory Maze

Against the backdrop of New York’s iconic Tribeca 360, day two of the summit takes center stage with a focus on regulatory compliance and responsible gaming practices. Attendees can anticipate deep dives into the complexities of mergers and acquisitions, the role of AI and big data in betting, and the imperative of responsible gambling technology. With expert speakers offering guidance and expertise, participants are empowered to navigate the regulatory maze with confidence and clarity.

Day 3: Charting the Course for Growth

As the summit enters its penultimate day, the spotlight shines on strategies for sustainable growth and innovation in the gaming industry. From exploring the symbiotic relationship between responsible gambling initiatives and long-term profitability to harnessing the power of emerging technologies, attendees are treated to a wealth of insights designed to drive commercial success while upholding the highest standards of integrity and compliance.

Day 4: The Grand Finale

As the final day dawns, anticipation mounts for the grand finale of the SBC Summit North America. Attendees can look forward to a culmination of key insights, actionable strategies, and memorable moments as the industry’s brightest minds come together for one last day of inspiration and collaboration. From live editions of the Safe Bet Show to dedicated conference tracks covering sports betting, iGaming, and leadership, the summit concludes on a high note, leaving attendees energized and empowered to chart the course for the future of gaming.

In summary, the SBC Summit North America emerges as a transformative event, offering a platform for dialogue, innovation, and progress in the gaming industry. With stages brimming with thought-provoking sessions and speakers at the forefront of their fields, the summit sets the stage for a future defined by compliance, responsibility, and sustainable growth.

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Augustine Casino Ups Their Game with QCI Slots: A New Era of Data-Driven Gaming Innovation Begins

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Augustine Casino, a prominent name in the Coachella Valley gaming scene, is taking its commitment to guest satisfaction to new heights with the adoption of QCI Slots, the latest innovation from Quick Custom Intelligence (QCI). Building on the success of its partnership with QCI Host, Augustine Casino is poised to revolutionize the gaming experience for its patrons.

Elizabeth Wilberts, Assistant General Manager of Augustine Casino, said: “We are thrilled to expand our collaboration with QCI by incorporating their cutting-edge Slots solution. The reporting functionality, recommendation engine, Artificial Intelligence, and advanced heat mapping capabilities of QCI Slots will empower us to deliver unparalleled personalized experiences to our guests.”

This strategic move follows Augustine Casino’s successful implementation of the QCI Platform, including the QCI Host solution, which has already enhanced the casino’s ability to connect with its clientele on a deeper level. Now, with the addition of QCI Slots, Augustine Casino is poised to set new standards for excellence in the industry.

“We are proud to deepen our partnership with Augustine Casino and support their mission to provide exceptional service and value to their guests. The decision to integrate QCI Slots underscores Augustine Casino’s commitment to leveraging innovative technology to elevate the gaming experience,” Andrew Cardno, Chief Technology Officer of QCI, said.

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