DraftKings buy of Golden Nugget On-line Gaming nears completion

Sports activities betting big DraftKings expects to shut its $1.56 billion acquisition of Tilman Fertitta’s Golden Nugget On-line Gaming by the tip of subsequent month, however it’s unclear when the corporate will function retail and on-line sportsbooks in Nevada.

In a submitting with the Securities and Alternate Fee on Friday, DraftKings mentioned the businesses “proceed to pursue the remaining gaming regulatory approvals crucial” to finish the transaction, which was introduced final August.

DraftKings expects the all-stock transaction to be finalized by Could 31.

The transaction features a business settlement with Fertitta Leisure, the Texas billionaire’s holding firm that controls companies throughout gaming, lodging, eating and leisure sectors, together with the Golden Nugget casinos in downtown Las Vegas, Laughlin and three different states.

Fertitta owns 46 % of Golden Nugget On-line Gaming and can be a part of the DraftKings board as soon as the deal closes. Fertitta is a cousin of Crimson Rock Resorts CEO Frank Fertitta III and Vice Chairman Lorenzo Fertitta and isn’t concerned within the firm that controls gaming operator Station Casinos.

DraftKings has grown prior to now 4 years from a every day fantasy sports activities supplier right into a sports activities betting big working retail and on-line sportsbooks in 17 of the 20 states with authorized sports activities betting.

The corporate is taken into account both the No. 1 or No. 2 sports activities betting supplier in these markets.

One of many advantages DraftKings cited throughout the announcement was the rebranding of retail sportsbooks underneath the DraftKings identify “at present and future Golden Nugget casinos.”

The Nevada Gaming Management Board confirmed that Boston-based DraftKings has an utility on file for licensing.

“The DraftKings utility remains to be in course of,” Michael Lawton, the company’s senior financial analyst, mentioned in an electronic mail. “The Nevada Gaming Management Board doesn’t anticipate that will probably be on the Could agenda and the board will hear it at a later date, however solely when the investigation is full.”

As a result of neither DraftKings nor Golden Nugget On-line Gaming is licensed in Nevada, approval from state gaming regulators isn’t required.

A DraftKings spokesman didn’t reply to an electronic mail requesting remark.

A rendering of the sports activities oddsmaking and merchants space inside DraftKings’ deliberate 90,000-square-foot headquarters in Las Vegas. (Courtesy photograph)

In October, DraftKings introduced it was taking 90,000 sq. ft of workplace area contained in the UnCommons advanced in southwest Las Vegas to create a “expertise hub” that can make use of greater than 1,000 employees.

The area would be the firm’s second-largest behind its company headquarters in Boston. On the time, DraftKings North America President Matt Kalish mentioned the Las Vegas growth “exemplifies” the corporate’s “funding in its workers and the way forward for the corporate, in addition to the area people.” The placement is predicted to open within the subsequent few months.

UnCommons is positioned simply south of the 215 Beltway off Durango Avenue. DraftKings mentioned its Las Vegas presence has grown 400 % since its first workplace opening in January 2020 on the City Sq. advanced on the south finish of Las Vegas Boulevard.

On Monday, DraftKings introduced it was one among six corporations planning to launch regulated sports activities betting operations in Ontario, Canada, which is the primary province to legalize single-game sports activities wagers. The corporate additionally mentioned it was constructing a sportsbook at Mashantucket Pequot Tribal Nation’s Foxwoods El San Juan On line casino in Puerto Rico, increasing its present relationship with the Connecticut tribe.

The information helped increase DraftKings’ inventory value by greater than 7 % on the Nasdaq Monday. The corporate’s shares had fallen greater than 20 % for the reason that begin of the 12 months.

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