A leading iGaming operator is taken over by the online sports betting company with a presence in most of the states.

What Happened: DraftKings Inc (NASDAQ: DKNG) acquires Golden Nugget online game (NASDAQ: GNOG) in an all stock transaction. Golden Nugget Online Gaming shareholders will receive 0.365 DKNG shares for each GNOG share they own.

The deal values ​​Golden Nugget Online at $ 1.56 billion based on Monday’s share price.

Tilman Fertitta holds 46% of the GNOG shares and will hold the new DKNG shares for at least one year. Fertitta owns 72% of the acquisition company in an updated agreement in July that added additional restaurants and changed the valuation to $ 8.6 billion.

Fast acquisition company (NYSE: FST) Goes public with Golden Nugget Casinos and Landry’s Restaurants through the SPAC merger. PSPC was to have a controlling interest in Golden Nugget Online Gaming.

Related Link: 3 Sports Betting Shares That Could Be Purchased

Why this is important: Golden Nugget Online Gaming has over 5 million customers. DraftKings’ acquisition follows last week’s acquisition of Score Media and Gaming Inc (NASDAQ: SCR) by Penn National Gaming (NASDAQ: PENN).

DraftKings also entered into a business deal with Fertitta Entertainment, the parent company of Golden Nugget Online which also owns the NBA Houston Rockets, Golden Nugget Casinos, and Landry’s restaurant group.

The companies see $ 300 million in synergies at maturity and have defined a multi-brand strategy for cross-selling opportunities.

DraftKings will benefit from reduced market access rates and preferential pricing for Fertitta’s assets. DraftKings will also have the ability to gain market access on favorable terms for Golden Nugget casinos.

There are Golden Nugget physical casinos in New Jersey, Mississippi, Louisiana, and Nevada.

DraftKings ended the last quarter with online sports betting in 12 states and iGaming in four states. Golden Nugget Online could attract new customers to the DraftKings ecosystem with a focus on iGaming.

Golden Nugget Online offers online gaming in New Jersey and Michigan with more states to come. The company said it expects to be online in six states by the end of the year and has access to the iGaming market for 12 states. First quarter revenue of $ 26.7 million increased 54% year-on-year for Golden Nugget Online Gaming.

GNOG, DKNG Price Action: Golden Nugget shares rose 49% to $ 18.26 on Monday. DraftKings shares are up 3% to $ 52.93.

FST shares are up 7% to $ 12.38 on Monday.