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DraftKings Deal To Acquire Golden Nugget Gaming Nearing Completion

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Written By Nicholaus Garcia on March 16, 2022
DraftKings' deal to acquire Golden Nugget Gaming is almost complete says CFO Jason Park.
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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.

Park continued:

“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. 

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Nicholaus Garcia Avatar
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Nicholaus Garcia

Nick Garcia is a senior reporter for Playin USA. Garcia provides analysis and in-depth coverage of the gambling industry with a key focus on online casinos, sports betting and financial markets. Garcia has been covering the US gambling market since 2017. He attended Texas Tech University as an undergrad and received a Master of Arts in Journalism from Columbia College Chicago.

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