Golden Nugget Online Gaming Stock Piques Investor InterestCommercial Content | 21+ | T&Cs Apply
Online gaming is a hot topic right now. In light of the continued situation, interest in every form of gambling online remains high.
This is also the case with investors looking for solid buys in the gaming industry. Most US gaming stocks are tied to land-based casino operations. More recently, a brand new US-based stock became the only publicly traded online gambling company.
Golden Nugget owner Tilman Fertitta created Landcadia Holdings II to complete the purchase of Golden Nugget Online Gaming in June. The new company (NASDAQ:LCA) began trading on July 9 and it closed that day’s session up 14.2%.
The initial company value was $745 million. Since it is only conducting business in New Jersey right now, the upside growth potential is rather high. This online gambling and sports betting site hopes to expand into Pennsylvania and Michigan’s online gaming market in 2021. As more and more states pass legislation to approve online casino gambling and sports betting, that overall value will continue to grow.
DraftKings Sportsbook has been another hot topic this year as far as gaming stocks. As a result of a three-way merger in April, the company went public. Trading on NASDAQ as DKNG, the value of that stock continues to increase at a strong clip. According to the Motely Fool, the current market capitalization of DraftKings is $11.5 billion.
The future plans for Landcadia Holdings II is a name change to Golden Nugget Online Gaming with the stock symbol GNOG.
According to a NASDAQ press release on June 29, Landcadia Holdings II assumed $150 million of Golden Nugget debt while also paying down another $150 in debt by acquiring Golden Nugget Online Gaming. Landcadia Holdings II was classified as a publicly traded special purpose acquisition company. It was co-sponsored by Fertitta Entertainment Inc. and Jefferies Financial Group Inc.
Upon closing, the company plans to trade under the name Golden Nugget Online Gaming Inc. using the NASDAQ symbol GNOG. Fertitta is the CEO of the parent company Golden Nugget. He will hold the controlling economic interest in the combined company. Fertitta will also hold the controlling voting interest. The company will have a dual-class structure with super voting rights given to the CEO.
Mr. Fertitta is known in the sports world as the owner of the NBA’s Houston Rockets. Another claim to fame as CEO of Golden Nugget is bringing Live Casino gaming to the US. This is the technology that allows online gamblers to play table games such as Blackjack and Roulette with the use of live dealers. The games are streamed live from actual land-based studios.
According to multiple reports, the deal is expected to close in the third quarter of this year.
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