Golden Nugget Online Gaming Inc. is set to become just the second pure online casino company to go public in the US. Taking the company public is local billionaire Tilman Fertitta.
Using the special purpose acquisition company Landcadia Holdings II Inc., a press release from June 29th announced the deal. The deal is expected to be completed sometime in the third quarter of 2020. Landcadia Holdings II Inc. will then change its name to Golden Nugget Online Gaming Inc.
Market traders will be able to trade the company’s shares on Nasdaq using the symbol GNOG.
Once the move has been completed, Fertitta will remain both the CEO and chairman of the company. He will also control the voting and economic interests of the company, thus allowing him to determine the company’s future.
Thomas Winter will be the president of Golden Nugget Online Gaming Inc. Winter is known for launching Golden Nugget’s online gaming business in New Jersey back in the fourth quarter of 2013. Since the launch, Golden Nugget has gone from strength to strength.
Observers of iGaming in New Jersey note that since the company reached profitability in 2016, Golden Nugget has come to dominate the state’s market. It’s now the market leader within the largest iGaming jurisdiction in the US. It was responsible for a third of the state’s gaming revenue in May 2020, for example.
By 2021, Golden Nugget in New Jersey is expected to generate $122 million in revenue.
The deal has valued the enterprise at $745 million. With the deal complete, Landcadia will take on $150 million in debt and pay an additional $150 million of debt once the deal has been closed. The trust account for Landcadia currently holds $321 million.
Once the deal has been closed, the consolidated balance sheet will have at least $80 million on the books. This will be after all associated costs have been paid, such as debt repayment, transaction fees, and miscellaneous expenses.
It should be noted that the deal must still be approved by a majority of the outstanding shareholders of Landcadia. This excludes the shares of the Fertitta and Jefferies Financial Group.
Fertitta began taking blank-check companies public back in 2016, with a $250 million IPO. The original Landcadia completed a $308 million deal to take Waitr Inc. public.
Waitr Inc. is an online food ordering service. Today, it’s still trading well on Nasdaq under the name Waitr Holdings Inc.
Becoming just the second pure online gaming company to go public, Golden Nugget is expected to be one of the industry pioneers. Other online gaming companies will be watching Golden Nugget’s progress closely.
Its position as a public entity will also enable it to make significant progress if and when other US states open their doors to iGaming.
As one of the major growth industries in the US, there’s a tremendous amount of opportunity for both Golden Nugget and others.
However, only time will tell as to how Golden Nugget fairs as a public iGaming entity.
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