Golden Nugget Online Gaming will go public on the Nasdaq exchange following a special-purpose reverse merger with blank check company Landcadia Holdings II.
Golden Nugget Online Gaming, the online division of the Golden Nugget chain of casinos owned and operated by Landry’s Incorporated and owned by Tilman Fertitta, will become only the second online casino operator to be purely publicly traded on a US exchange.
The deal, which is expected to close in the third quarter of 2020, will see the operator’s shares traded on the Nasdaq under the GNOG ticker symbol. It values GNOG at approximately $745m, or 6.1x its projected 2021 revenue of $122m.
Golden Nugget is the market leader in the New Jersey online casino market, the oldest and largest igaming jurisdiction in the US, responsible for 33.8% of the state’s $85.9m gross gaming revenue in May.
The operator has market access agreements in Michigan and Pennsylvania as well, and plans to launch in each state next year, subject to regulatory approvals.
Landcadia II is a ‘blank check’ company established to act as a vehicle through which a business can secure a public listing, and was created through a joint venture between Fertitta and investment bank Jeffries LLC.
“GNOG is one of the best positioned companies to capitalize on this massive online gaming opportunity in the US,” Rich Handler, chief executive of Jeffries and co-chair of Lancadaia, explained. “We at Jefferies couldn’t be more thrilled to partner with Tilman and bring this great opportunity to the public markets.”
Tilman Fertitta will continue to serve as the operator’s chief executive and chairman, while Thomas Winter will continue as its president. Fertitta praised Winter’s efforts in growing the operator’s footprint in the seven years since Golden Nugget Online Gaming launched.
“Golden Nugget is one of the most time-honored brands in the gaming business today. When customers hear the name Golden Nugget, they know they are dealing with a trusted online gaming business,” Fertitta said.
“Thomas and his team have done a remarkable job, are the best in the industry, and with this transaction, will have access to growth capital to allow for the rapid expansion of the business.”