Golden Nugget Invests in Boom Ent.
Online casino and sports betting operator Golden Nugget Online Gaming (GNOG) has entered into a partnership with Boom Entertainment. The deal will see GNOG gain access to the developer’s iGaming content, while simultaneously becoming a minority investor in its burgeoning business. GNOG will also be joining Rush Street Interactive as an investor in Boom.
Golden Nugget Online Gaming (GNOG) has entered into a partnership with Boom Entertainment. The deal will see the now-minority investor gain exclusive access to Boom’s iGaming content. ©12019/Pixabay
GNOG to Gain Ohio Market Access as Part of Deal
Golden Nugget Online Gaming (GNOG), the online gaming division of luxury hotels and casino brand Golden Nugget Hotel & Casinos, has announced that it has struck a partnership deal with iGaming developer Boom Entertainment.
The nascent agreement will see GNOG receive access to Boom’s online gaming content and assets, while also becoming a minority investor in the developer’s increasingly booming business opportunities.
Curiously enough, GNOG has already acted as a minority investor in Boom, having engaged in the company’s most recent round of financing. In doing so, it joined the ranks of online casino and sports betting operator Rush Street Interactive (RSI) — which is now also a minority investor.
The specifics of GNOG’s and Boom’s deal will see the former be granted exclusive access to the online gaming developer’s wide-ranging portfolio of services and products. These will most likely include its extensive casino game library, remote game server, as well as its wide array of free-to-play and real money sports betting channels.
The cherry on top for GNOG? It will now also enjoy secure and stable market access in the state of Ohio thanks to Boom’s exclusive rights in the Buckeye State. Finally, Boom promises to develop a specialized and exclusive games library for GNOG, working in close collaboration with the online gaming giant.
GNOG 2021 Performance Has Been Strong; Boom Ent. Partnership Will Build on That
Despite the trials and tribulations of the past year and a half, largely due to the outbreak of the novel coronavirus (Covid-19) pandemic around the world, Golden Nugget Online Gaming (GNOG) has nonetheless enjoyed encouraging growth and continued activity.
In its most recent quarterly report, Tilman Fertitta, GNOG’s Chairman and Chief Executive Officer, emphasized the company’s continued national expansion, positioning its partnership with Boom Entertainment as a strong asset with much potential:
“We are proud to have achieved another solid quarter driven by the strength of our new customer growth both in our established and newer markets. Golden Nugget Online Gaming continues to successfully execute on our national expansion, while concurrently strengthening our capabilities and product offerings with key partnerships. In addition, our partnership with Boom Entertainment will only strengthen our award-winning content offerings. We are increasingly encouraged by our results and look forward to executing on the significant and growing market opportunity available to us.”– Tilman Fertitta, Chairman and CEO, Golden Nugget Online Gaming (GNOG)
Meanwhile, Golden Nugget Online’s President Thomas Winter highlighted the group’s expansion into the states of Ohio and Arizona as yet another significant step in GNOG’s forays into the burgeoning US online gaming and sports betting market:
“Our latest agreements highlight yet another big step in executing on our market expansion plans by adding the states of Ohio and Arizona to our list of potential future markets and we look forward to launching online casino and sports when legislation and regulations permit.”
DraftKings Will Be Acquiring 100% of GNOG in $1.56 Billion Deal
GNOG’s recent partnership with Boom Entertainment arrives shortly after DraftKings announced that it would be acquiring 100% of Golden Nugget Online from the operator’s parent company Fertitta Entertainment Inc. in a highly-valued $1.56 billion all-stock deal.
The fantasy sports and sports betting pioneer will pay 0.365 of each newly issued share in return for each common share of Golden Nugget Online Gaming as part of the exclusive deal. GNOG chairman and major stakeholder Tilman Fertitta will hold onto the DraftKings shares, estimated to be worth more than $700 million to be exact, for a period of at least a year.
Furthermore, Fertitta will also continue to hold onto his Golden Nugget land-based enterprises, continuing their partnerships with GNOG in order to maintain mutual access to customer databases.
Jason Robins, DraftKings’ CEO and Chairman, sees its acquisition of Golden Nugget Online Gaming as an opportunity to significantly expand its consumer base:
“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.”– Jason Robins, CEO and Chairman, DraftKings
Golden Nugget Went Public in January 2021
A significant milestone for Golden Nugget Online Gaming (GNOG) arrived this past January 2021, when it finally made the leap and went public on the New York Stock Exchange (commonly known as NASDAQ).
Technically, Golden Nugget had already gone public by that point, in late 2020 to be exact, however it only began trading publicly in the first weeks of 2021 due to clashing with the holiday season.
GNOG hopped onto the American stock market together with another major gaming and hospitality company, this one headquartered in Chicago, Illinois, and going by the name of Rush Street Interactive.
GNOG Enjoyed Record Revenue Results Back in November 2020
In November 2020, Golden Nugget proudly announced that its online gaming vertical, Golden Nugget Online Gaming, had smashed through previous revenue highs for the third fiscal quarter of 2020.
Such encouraging news came at precisely the right moment for Golden Nugget, given its impending public offering on the New York Stock Exchange (NASDAQ) in January 2021.
GNOG only operated in the state of New Jersey at the time, where its gross gaming revenue increased by 93% in comparison to the same period in 2019. This ended up amounting to a total of $28.9 million for the operator’s online gaming revenue for Q3 2020, standing in stark contrast to the $14.9 million generated during the same period of time in 2019.
