Golden Nugget to go public in $745m acquisition
Landry’s to sell online gaming arm to SPAC co-sponsored by Tilman Fertitta as operator eyes Pennsylvania and Michigan igaming launches
Golden Nugget parent company Landry’s is selling off its igaming business for $745m as it seeks to go public on the Nasdaq.
Special purpose acquisition company (SPAC) Landcadia II will acquire Golden Nugget in a deal that is worth 6.1x the operator’s revenue valuation.
It is expected to close in Q3 of this year.
As part of the deal, Landcadia II will take on $150m of Golden Nugget’s debt, with Landry’s owner Tilman Fertitta to remain chairman and CEO of the new tie-up as his holding company Fertitta Entertainment is a co-sponsor of the SPAC.
The combined company is expected to have $80m on its consolidated balance sheet with an expected market cap of $700m, once the deal closes.
Golden Nugget’s SVP and general manager for online gaming, Thomas Winter will stay on with the group as president.
SVP online gaming Thomas Winter will remain with the firm as president
Winter has been instrumental in growing the operator’s online market share in New Jersey where it has consistently been the highest-earning casino licensee alongside sub-brands Betfair, SugarHouse and BetAmerica.
After launching in the state in 2013, Golden Nugget was first to launch live casino and recorded a net income of over $11m in 2019.
It is understood that Golden Nugget expects to launch its online casino product in Pennsylvania and Michigan in early 2021.
Landcadia II will rename the operator to Golden Nugget Online Gaming Inc with the Nasdaq ticker symbol $GNOG.
The deal will follow a very similar trajectory to that of DraftKings’ tie-up with SPAC Diamond Eagle Acquisition Corp, which has resulted in huge gains as the DraftKings share price rose from $17 to around $44 shortly after the IPO.