Share
According to Jason Park, CFO of Draftkings, the company’s acquisition of Golden Nugget Gaming ($GNOG) is fast approaching. In addition to this, DraftKings views its NFT platform, Marketplace, as its next big revenue generator.
In August 2021, DraftKings paid $1.56 billion in an all-stock deal to acquire $GNOG. The deal is expected to close in early 2022.
DraftKings and Golden Nugget acquisition
As of writing, shares of $GNOG stock were trading at $6.48 per share.
During Bank of America’s Sports Betting and Online Gaming Virtual Event, Park said closing is imminent.
Park continued:
“DraftKings has done incredibly well with iGaming. The DraftKings brand just doesn’t resonate with that casino-first customer nearly as much as Golden Nugget does and we looked at multiple opportunities. We looked at building our own casino-first brand and we got very excited about the Golden Nugget brand. We will very likely maintain the Golden Nugget brand. It’s a brand that resonates with a different demographic that we don’t have today.”
DraftKings entering the NFT space
DraftKings Marketplace is a platform where users can buy, sell and trade digital collectibles. In July 2021, the company partnered with Autograph, an NFT platform co-founded by Tom Brady.
According to the Marketplace website, a new exclusive NFT will debut each week. Upon signing in via their DraftKings account, users will enter an online waiting room for a chance to purchase the limited quantity NFT.
In the short term, DraftKings expects $70 million in revenue from the platform in 2022.
Park had this to say:
“Crypto and NFTs were something that our players were already engaging with. We’re seeing great cross-sell once we get them on through the marketplace. Marketplace is something that we would expect to be breakeven or profitable out of the gates.”
DraftKings also has a clear path to profitability, beginning with customer acquisition. As Park noted, the company’s four main verticles will play a clear role moving forward.
- DraftKings online sportsbook
- DraftKings online casino
- Daily fantasy sports
- DraftKings Marketplace
