Golden Nugget Becomes Second Publicly Traded Online Casino In The US

Published: 30/06/2020

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Landcadia II, run Landcadia Holdings II, Inc., bids for a Purchase Agreement to acquire the US online retail money casino Golden Nugget Online Gaming, Inc., owned by Tilman Fertitta.

Golden Nugget, a Live Dealer pioneer, is one of the biggest online casinos in the US market. At the same time, Landcadia, co-sponsored by Fertitta Entertainment, Inc., and Jefferies Financial Group Inc., is a public traded firm.

Landcadia works as a blank check company specializing in a merger, stock exchange asset acquisition, stock purchase, and reorganization of businesses. After the merger, which is expected to close in the third quarter, Golden Nugget will be listed as a publicly traded online casino. Landcadia will soon bear the brand Golden Nugget Online Gaming, Inc.

The merger will allow the public to purchase shares from the online gaming platform. Golden Nugget has established its name in the US’s iGaming industry after becoming the leader in New Jersey, North America’s biggest online gambling market.

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Golden Nugget continues to expand operations

Golden Nugget proposes to expand its operations in Pennsylvania and Michigan after acquiring approval from industry regulators. The company plans to launch products to states by 2021. The US online gaming market recognizes the influence of the company.

For three consecutive years, the company bagged the EGR North America Top Operator Award and is known as a pioneer in offering Live Dealer and Live Casino Floor gambling. The company released innovations, including various slot machine games available for modern gadgets across New Jersey. Its customer service offers assistance 24 hours a day and seven days a week.

After the merger, Tilman J. Fertitta will retain post as Chairman and CEO while Thomas Winter will work as the company’s president. Mr. Winter was hired seven years ago to develop the company’s online gaming platform. Since his arrival, the company’s revenue and income increased despite fierce competition.

Mr. Fertitta recognized Golden Nugget’s influence in the iGaming business. He also appreciated the efforts of Mr. Thomas and his team in the making the company the best in the industry. He is sure of the potential for growth in capital and the rapid expansion of its operations through the merger with Golden Nugget.

Terms of the Purchase Agreement

The merger has an estimated worth of approximately $745million, six times the estimated value of Golden Nuggets in 2021. After the purchase, Tilman J. Fertitta will gain control of the company’s economic and voting interests.

Landcadia II will assume the debt of Golden Nuggets, which is estimated to be more than $300 million, including. Landcadia currently holds nearly $321 million in its trust account, which is subject to redemption.

Financial and capital markets advisor Jefferies LLC will provide service to the combined companies. Hanes and Boone LPP will take charge of legal matters for Golden Nuggets while White & Case works for Landcadia II.

The purchase gained the approval of the Board of Directors of Landcadia II but still needs the majority shareholders’ support. It also needs to pass customary closing requirements.