LAS VEGAS (AP) — Sports betting website DraftKings Inc. is buying the online gambling subsidiary of Golden Nugget Inc. in a stock deal valued at $1.56 billion, the two companies said Monday.
The acquisition of Golden Nugget Online Gaming gives Boston-based DraftKings a well-known brand in the casino and gambling world, and adds more than 5 million customers to DraftKings iGaming accounts, a statement from the companies said.
“Our acquisition of Golden Nugget Online Gaming, a brand synonymous with iGaming and entertainment, will enhance our ability to instantly reach a broader consumer base,” said Jason Robins, CEO and board chairman of DraftKings.
Tilman Fertitta, the Houston-based billionaire chairman and CEO of Golden Nugget Online Gaming, also owns the NBA Houston Rockets, Landry’s restaurants and Golden Nugget casinos in Las Vegas and Atlantic City, New Jersey.
He pointed to promotional and marketing advantages for the two publicly traded companies.
“This transaction will add great value to the shareholders as two market leaders merge into a leading global player in digital sports, entertainment and online gaming,” Fertitta said in the statement.
Golden Nugget Online shares traded up nearly 51% on news of the acquisition, closing at $18.50.
DraftKings shares rose 1.49% to close at $52.36.