Golden Nugget Online Gaming faces investigation over DraftKings takeover

Golden Nugget Online Gaming (GNOG) is being investigated by Kaskela Law LLC as it was announced Friday, on behalf of the company’s stockholders. 

On August 9, 2021, GNOG stated that it would be acquired by DraftKings in an all-stock transaction. 

The commercial agreement, which involves Golden Nugget’s iGaming product and existing combined database of more than 5 million customers, was made with Fertitta Entertainment, Inc., the parent company of the Houston Rockets, Golden Nugget and Landry’s. 

Under the terms of that agreement, Golden Nugget stockholders are expected to receive a fixed ratio of 0.365 shares of DraftKings’ common stock for each share of the acquired company’s common stock they hold. 

The investigation intends to determine whether Golden Nugget’s board of directors breached their fiduciary duties in connection with the proposed transaction, and whether Golden Nugget’s stockholders will be receiving sufficient consideration for their Golden Nugget shares. 

The Board of Directors of both companies already approved the transaction, which is subject to approval by Golden Nugget Online Gaming stockholders, the receipt of required regulatory approvals and other customary closing conditions, and is expected to close in the first quarter of 2022.