Texas billionaire Tilman Fertitta, a major shareholder at Golden Nugget Online Gaming Inc, is partnering with industry rival DraftKings in a $1.6 billion merger deal.
Fertitta, which holds a 44% stake in Golden Nugget, will join the board of the newly formed company under the name New DraftKings after the merger. The gambling industry is undergoing consolidation after last year’s coronavirus crisis put serious pressure on its revenues.
The gambling deal is entirely arranged with shares of both gambling companies. The transaction is expected to be completed in the second quarter of 2022.
DraftKings stated in a statement that he was pleased with Fertitta’s accession. The American gambling company is the organizer of daily fantasy sports competitions and operator of sports betting.
In addition to his gambling activities, Fertitta has also focused his eyes on the sports world and basketball in particular. He owns the Houston Rockets. His assets are estimated by Business magazine Forbes at $4.7 billion.