As online gambling continues to accelerate, so does the fortune of this provider. The company is expected to grow by 30.30% next year.
DraftKings Inc. (DKNG)
From Power Growth Investor
DraftKings is a Power Buy. The company (TSINetwork Rating: Extra Risk) is acquiring Golden Nugget Online Gaming (GNOG) for $1.56 billion in stock.
The deal gives the company a combined database of more than five million customers. And by using the Golden Nugget brand, DraftKings hopes to reach a broader consumer base for online casino games, also known as iGaming.
Tilman Fertitta, who owns 46% of Golden Nugget, has agreed to continue to hold the DraftKings shares to be issued to him in the merger for a minimum of one year from the closing of the transaction. Tilman will join DraftKings’ board of directors, as well as being one of its largest shareholders.
Golden Nugget Online Gaming operates in New Jersey and Michigan. Its catalog of online casino games in the New Jersey market number more than 800 titles. The company is now targeting Pennsylvania, Illinois, West Virginia, and Virginia as potential states in which to expand.
DraftKings should remain the dominant player in the expanding U.S. sports-betting market—and Golden Nugget just adds to that. Meantime, the company’s online business model is a big plus, compared to the capital-intensive casino model.
DraftKings is a Power Buy.
Patrick McKeough, Power Growth Investor, tsinetwork.ca, 888-292-0296, September 2021