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Draftkings Shares Up Slightly as Competitor Golden Nugget Lists on the Nasdaq

Simon Mugo trader
Updated 22 Mar 2021

Draftkings Website

Shares of Draftkings Inc were up premarket despite Golden Nugget Online Gaming, which is owned by Tilman Fertitta the CEO of Houston Rockets, listing on the Nasdaq. Golden Nugget Online Gaming listed on the Nasdaq through a reverse merger with blank cheque company Landcadia Holdings II (NASDAQ: LCA).

Golden Nugget is now the second listed fully online Casino in the US and will be looking to capitalise on the sports betting culture following the legalisation of sports betting. The betting company’s customers can bet on NBA games with the exception of Houston Rockets games since the franchise is owned by the same person.

Draftkings Inc share price

The transaction was made completed via the special purpose company Landcadia Holdings II, which operates as a blank cheque company used for mergers and acquisitions.

Golden Nugget is a well-known online bookmaker within the US having a huge presence in New Jersey and won multiple casino operator awards in the past. The company’s innovations include Live Dealer and Live Casino Floor gambling among other online gaming innovations such as its iGaming platform.

The transaction is set to close in Q3 2020 putting pressure of Draftkings, which was the sole listed online casino operator before Golden Nugget’s listing. The company will also assume the Golden Nugget name and ticker symbol GNOG upon completion.

The listing is set to benefit investor who will now have a choice of two companies when looking for investment opportunities. The extra competition will also generate value for shareholders and customers as the firms compete for market share by providing great products and services.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading