DraftKings Deal To Acquire Golden Nugget Gaming Nearing Completion
According to Jason Park, CFO of Draftkings, the company’s acquisition of Golden Nugget Gaming ($GNOG) is fast approaching. In addition to this, DraftKings views its NFT platform, Marketplace, as its next big revenue generator.
In August 2021, DraftKings paid $1.56 billion in an all-stock deal to acquire $GNOG. The deal is expected to close in early 2022.
DraftKings and Golden Nugget acquisition
As of writing, shares of $GNOG stock were trading at $6.48 per share.
During Bank of America’s Sports Betting and Online Gaming Virtual Event, Park said closing is imminent.
“DraftKings has done incredibly well with iGaming. The DraftKings brand just doesn’t resonate with that casino-first customer nearly as much as Golden Nugget does and we looked at multiple opportunities. We looked at building our own casino-first brand and we got very excited about the Golden Nugget brand. We will very likely maintain the Golden Nugget brand. It’s a brand that resonates with a di fferent demographic that we don’t have today.”
DraftKings entering the NFT space
DraftKings Marketplace is a platform where users can buy, sell and trade digital collectibles. In July 2021, the company partnered with Autograph, an NFT platform co-founded by Tom Brady.
According to the Marketplace website, a new exclusive NFT will debut each week. Upon signing in via their DraftKings account, users will enter an online waiting room for a chance to purchase the limited quantity NFT.
In the short term, DraftKings expects $70 million in revenue from the platform in 2022.
Park had this to say:
“Crypto and NFTs were something that our players were already engaging with. We’re seeing great cross-sell once we get them on through the marketplace. Marketplace is something that we would expect to be breakeven or profitable out of the gates.”
DraftKings also has a clear path to profitability, beginning with customer acquisition. As Park noted, the company’s four main verticles will play a clear role moving forward.
- DraftKings online sportsbook
- DraftKings online casino
- Daily fantasy sports
- DraftKings Marketplace