DraftKings entered into a definitive agreement on Monday to acquire Golden Nugget Online Gaming in an all-stock deal valued at roughly $1.56 billion.
The acquisition will see the fantasy sports giant use Golden Nugget Online to expand its reach with a combined database of more than 5 million customers.
Golden Nugget is a subsidiary of Fertitta Entertainment, a conglomerate owned by billionaire restaurateur Tilman Fertitta. Its properties also include the Houston Rockets and Landry’s.
DraftKings generated $298 million in revenue in Q2 2021, a 297% increase compared to the same period a year prior.
The company has shown a willingness to spend to diversify its business.
- It purchased sports betting media network VSiN in March for $70 million.
- The same month, it agreed to a five-year partnership with UFC in a deal with more than $100 million.
- It inked a $50 million deal in April with Meadowlark Media for Dan Le Batard’s radio show and podcast network
- The company is teaming up with sports bar chain Sports & Social to create co-branded dining establishments with a sports betting experience.
DraftKings does not expect to be profitable in 2021, according to the company’s Q1 earnings call.
Editor’s Note: DraftKings is an FOS partner.