DraftKings Announce Purchase Of Golden Nugget for $1.56 billion

There is a new addition to the vigorous online gambling era story with two operators in Michigan card-playing areas. All discussions start with DraftKings‘ announcement of a $1.56 billion all-stock purchasing accord of Golden Nugget Online Gaming. 

For DraftKings, one of the betting leaders of national sports, it was an intelligent move to foster its online casino attached with a proven brand. Golden Nugget Casino started its marketing strategy with an average market share. In recent times, they even work with CEO Tilman Fertitta. Residents throughout the state recognize both DraftKings and Golden Nugget as two fast-running 14 live Michigan Online Gambling Operators. Shortly, people will not see any change for Michigan players at both DraftKings and Golden Nugget except other happenings. It sounds out of the question to think twice about this fact even after the sale ends.

Improving DraftKings Casino Position by the Purchase of Golden Nugget

In Michigan, there is the rival of DraftKings Casino named FanDuel. Behind BetMGM Casino, DraftKings struggles to achieve the second position in online Gaming Revenue each month. Because we understand that such acquisition will get DraftKings to rule the national online casino market, this is pretty unfortunate that the place is already in favor of Boston Company. 

In June, these three operators-DraftKings, BetMGM, FanDuel made up the market share to 77.2%. After this confronting competition, DraftKings earned only about $84.6 million in the online casino revenue, where its rivals are way ahead of the terms. As a result, BetMGM and FanDuel earned $175.4 million and $89.0 million in the past six months and left DraftKings position in third place. With $18.2 million in revenue and the Eighth position, Golden Nugget is out of order in the MI online Casino Revenue list. The announcement does not diminish Golden Nugget’s value throughout the past years, even with not less than 5 million customers. 

Golden Nugget was the first-ever operator that brought live dealers of online casino products to the United States. On another note, after the official launch last month through Evolution, Golden Nugget, one of the ten operators, offers live dealer casino games in Michigan.

As the eleventh brand in Michigan’s online sports betting handle, Golden Nugget took only $4.1 million wagers in June. These wagers only cover Four Winds Sportsbook with a $1.9 million handle that launched a few weeks before the Golden Nugget’s and FireKeepers’ one.

GNOG Spun Out, Now Spun-Off to DraftKings

The previous year, Golden Nugget publicly traded on the Nasdaq Stock exchange. DraftKings has invested in the same division (GNOG) that Golden Nugget has also entered. However, DraftKings made a sudden deal with Fertitta’s Houston Rockets, and so it could not join Nevada with the help of Golden Nugget.

No other company or individuals can take over the naming rights of Golden Nugget Las Vegas Hotel and Casino. Fertitta’s Landry’s Inc, being the national restaurant and hotel union, still owns them. Additionally, the Las Vegas Property of the Downtown will get DraftKings sportsbooks on board.

Questionable DraftKings’ Physical Property Plans Based in Michigan

Moreover, DraftKings’ current rivals are Barstool, BetMGM, and FanDuel. They all have a presence in Downtown Detroit’s casinos with retail sportsbooks. According to PlayMichigan, DraftKings retail sportsbook is growing at Bay Mills Casino in Brimley. DraftKings is still expanding into the Detroit sports bar market with the partnership of Sports & Social near the stadium district downtown. On the day of the announcement, PointsBet Sports Bar replaced Sports & Social at Little Caesars Arena without an exact location mentioned.

The Purchase of TheScore by Penn National Gaming

Penn, a possessor of Barstool Sportsbook and Barstool Sports, owns Greektown Casino in Detroit. After announcing a $2 billion purchase of TheScore by Penn National Gaming, the DraftKings investment made the headlines.

Is there any notion regarding the opening of Sports Betting Licenses of MI Online Casino in the Future?

The Michigan online gambling trade area covers the entry of DraftKings as the leading second company, including 15 more entries with the GNOG purchase. To get access in Michigan, both DraftKings and Golden Nugget partnered with Upper Peninsula Native American Tribes. Although they have partnerships with the same entity, they individually deal with separate communities. 

For instance, DraftKings deals with the Bay Mills Indian Community, where Golden Nugget accesses the Keweenaw Bay Indian Community. The same goes for Flutter brands as well, with two operator licenses. To get access, FanDuel makes a partnership with MotorCity Casino in Detroit, where Fox Bet SportsBook, Stars Casino, and PokerStars create a team-up session with the Little Traverse Bay Band of Odawa Indians.

Final Words

Michigan State is now well thought of as having the most incredible online gambling market. As the competitions are getting higher, securing a better position is everyone’s desire. Applying for a new license with completely new partners is getting comparatively easy for Casino Operators. After all, procedures depend on the contracts with genuine partners.