new york online sports betting

DraftKings announced it has reached an agreement to acquire Golden Nugget Online Gaming in an all-stock deal for $1.56 billion.

The iGaming expansion comes less than a week after DraftKings CEO Jason Robins confirmed the company is pursuing a New York online sports betting license.

Deal Includes Partnership with Houston Rockets

The acquisition will allow DraftKings Casino to leverage Golden Nugget Online Gaming’s (GNOG) brand, iGaming technology and database of more than 5 million customers. DraftKings will also enter into a commercial agreement with Fertitta Entertainment, Inc., the parent company of the Houston Rockets, Golden Nugget, LLC and Landry’s LLC, and will give DraftKings sportsbook an exclusive commercial deal across daily fantasy sports, sportsbook and iGaming with the Houston Rockets.

“This transaction will add great value to the shareholders as two market leaders merge into a leading global player in digital sports, entertainment and online gaming,” said Tilman Fertitta, Chairman and CEO of Golden Nugget Online Gaming and owner of the Houston Rockets, in a press release.

New Sportsbook at the Toyota Center

DraftKings intends to open a sportsbook at the Toyota Center, pending state legalization and regulatory approvals.

As part of the deal, DraftKings will form a new holding company, “New DraftKings,” to be the going-forward public company for both DraftKings and GNOG. New DraftKings will be renamed DraftKings Inc. at closing.

“Our acquisition of Golden Nugget Online Gaming, a brand synonymous with iGaming and entertainment, will enhance our ability to instantly reach a broader consumer base, including Golden Nugget’s loyal ‘iGaming-first’ customers,” said Jason Robins, DraftKings’ CEO and Chairman of the Board, in a release. “This deal creates meaningful synergies such as increased combined company revenues driven by additional cross-sell opportunities, loyalty integrations and tech-driven product expansion as well as technology optimization and greater marketing efficiencies. We look forward to Tilman being an active member of our Board and one of our largest shareholders.”