Landcadia To Acquire Online Casino Golden Nugget

Landcadia To Acquire Online Casino Golden Nugget

On Monday, Landcadia announced that it will be acquiring Golden Nugget Online Gaming Inc. With this acquisition, the online casino company will start trading publicly.

Change of name

Landcadia II aims to change its name to Golden Nugget Online Gaming after the acquisition. It also aims to trade on NASDAQ exchange under the ‘GNOG’ ticker. This public launch will change the landscape of the American gaming industry. Golden Nugget Hotels & Casinos already owns five properties in Las Vegas, Atlantic City, Laughlin, Lake Charles, and Biloxi. The company is owned by Tilman Fertitta and is currently held privately by Fertitta Entertainment.

Landcadia To Acquire Online Casino Golden Nugget

Landcadia II is a publicly-traded company. The special purpose acquisition company was co-sponsored by Jefferies Financial Group and Fertitta Entertainment. After the new company goes public and changes its name, Tilman Fertitta will continue to be the chairman and CEO of the company.

Rare opportunity for investors

Though several casino operators and gaming companies trade publicly, Golden Nugget will provide a rare opportunity for investors to work in a pure-play company in the online gambling market. Rich Handler, Jefferies CEO and co-chairman of Landcadia II said,

“GNOG is one of the best-positioned companies to capitalize on this massive online gaming opportunity in the US.”

The firm has already become a market leader in New Jersey in the online gaming sector. It also plans to expand into two other important gambling states- Michigan and Pennsylvania, in 2021. The firm began its journey in 2013 in New Jersey and became profitable in 2016. It earned a net income of $11 million in 2019.

The acquisition deal values the company at $745 million which is expected to generate about $122 million in revenue in 2021. The transaction will be completed by the third quarter of this year.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.