{"id":212204,"date":"2022-05-05T10:22:25","date_gmt":"2022-05-05T17:22:25","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=212204"},"modified":"2022-05-05T14:06:42","modified_gmt":"2022-05-05T21:06:42","slug":"draftkings-closes-gnog-deal-eyes-costs-savings","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-closes-gnog-deal-eyes-costs-savings\/","title":{"rendered":"DraftKings Wraps Up Golden Nugget Online Gaming Purchase"},"content":{"rendered":"

After months of tumbling share prices, DraftKings (NASDAQ:DKNG) has completed its acquisition of Tilman Fertitta\u2019s Golden Nugget Online Gaming (GNOG).<\/p>\n

\"DraftKings
A DraftKings advertisement at Citizens Bank Park, seen above. The company completed its acquisition of GNOG today. (Image: Getty Images)<\/figcaption><\/figure>\n

DraftKings announced a $1.56 billion all-stock offer for GNOG last August<\/a>, when the target was trading around $12. The target\u2019s shares nearly doubled over the next several weeks. But the wind came out of the sales of online casinos and sports betting equities soon thereafter, sparking concern on the fate of the deal. Underscoring the lengthy weakness for digital gaming stocks, GNOG shares closed at $5.78 on May 4 \u2013 the stock\u2019s final trading day.<\/p>\n

That means GNOG investors aren\u2019t earning as much compensation for their equity as was expected when the transaction was revealed. It also means DraftKings may be getting a better deal than originally expected.<\/p>\n

There will be multiple channels for cost savings by, among other things, recognizing enhanced returns on advertising spending through marketing efficiencies, eliminating platform costs from migrating Golden Nugget Online Gaming\u2019s current technology to DraftKings\u2019 in-house proprietary platform, and reducing G&A costs, such as vendor services and duplicative overhead,\u201d according to a statement.<\/p><\/blockquote>\n

DraftKings is forecasting $300 million in cost efficiencies as the deal matures — a potentially favorable point at a time when analysts and investors are clamoring<\/a> for the gaming company to cut expenses and shore up profitability efforts.<\/p>\n

Other Benefits for DraftKings<\/h2>\n

DraftKings sees revenue increasing by way of cross-promotion opportunities attained through the GNOG deal. While GNOG offers online sports betting, its bread and butter is internet casinos, and it\u2019s already profitable in some states on that front.<\/p>\n

Boston-based DraftKings reports first-quarter results Friday before the opening of US markets, and it\u2019s likely the company will offer more commentary on the GNOG transaction, potentially including updates to its 2022 outlook.<\/strong><\/p>\n

\u201cBy deploying a multi-brand strategy and accessing Golden Nugget Online Gaming\u2019s built-in iGaming-first customer, DraftKings expects to recognize increased returns on advertising spending and greater LTV to CAC ratios,\u201d according to the statement.<\/p>\n

It\u2019s also possible that buying GNOG provides DraftKings with a long awaited avenue for entering Nevada<\/a>. Fertitta\u2019s Fertitta Entertainment is the owner of the land-based Golden Nugget Casinos, which controls five Golden Nugget gaming venues, including one in downtown Las Vegas and another in Laughlin, Nevada. The company is also in the process of buying a Colorado casino.<\/p>\n

\u201cDraftKings and Fertitta Entertainment expect to rebrand certain current and future retail sportsbook locations at Fertitta Entertainment-owned Golden Nugget properties into DraftKings sportsbooks,\u201d the parties said in the statement.<\/p>\n

Fertitta Optimistic<\/h2>\n

While GNOG\u2019s closing price was nowhere close to where the stock traded when DraftKings made its offer, Fertitta is enthusiastic about the long-term prospects.<\/p>\n

In a recent interview with CNBC<\/em><\/a>, he said DraftKings has the potential to be a storied growth stock when it becomes a profitable company.<\/p>\n

He\u2019s becoming one of DraftKings\u2019 largest investors following the acquisition, and expressed long-term commitment to the stock.<\/p>\n","protected":false},"excerpt":{"rendered":"

After months of tumbling share prices, DraftKings (NASDAQ:DKNG) has completed its acquisition of Tilman Fertitta\u2019s Golden Nugget Online Gaming (GNOG). DraftKings announced a $1.56 billion all-stock offer for GNOG last August, when the target was trading around $12. The target\u2019s shares nearly doubled over the next several weeks. But the wind came out of the […]<\/p>\n","protected":false},"author":46,"featured_media":212205,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,32093],"tags":[],"acf":[],"yoast_head":"\nDraftKings Closes GNOG Deal, Eyes Costs Savings<\/title>\n<meta name=\"description\" content=\"DraftKings finalizes GNOG acquisition, turns attention to cost synergies.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/draftkings-closes-gnog-deal-eyes-costs-savings\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings Closes GNOG Deal, Eyes Costs Savings\" \/>\n<meta property=\"og:description\" content=\"DraftKings finalizes GNOG acquisition, turns attention to cost synergies.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-closes-gnog-deal-eyes-costs-savings\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-05T17:22:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-05-05T21:06:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/DKNG.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-closes-gnog-deal-eyes-costs-savings\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-closes-gnog-deal-eyes-costs-savings\/\",\"name\":\"DraftKings Closes GNOG Deal, Eyes Costs Savings\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-closes-gnog-deal-eyes-costs-savings\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-closes-gnog-deal-eyes-costs-savings\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/DKNG.jpg\",\"datePublished\":\"2022-05-05T17:22:25+00:00\",\"dateModified\":\"2022-05-05T21:06:42+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"DraftKings finalizes GNOG acquisition, turns attention to cost synergies.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-closes-gnog-deal-eyes-costs-savings\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-closes-gnog-deal-eyes-costs-savings\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-closes-gnog-deal-eyes-costs-savings\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/DKNG.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/DKNG.jpg\",\"width\":1200,\"height\":675,\"caption\":\"A DraftKings advertisement at Citizens Bank Park. 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