Scott Mlyn | CNBC
Landry CEO and Houston Rockets owner Tilman Fertitta will allow the public to buy shares in his new online gaming company. But they can't bet on Houston Rockets games.
The company joins Draftkings as the only other listed online casino company in the United States.
The state of New Jersey initially prevented Fertitta's company from hosting games from the National Basketball Association. However, last September, NBA bets were approved on the condition that bets exclude Rockets competitions. Sports franchise owners were prohibited from offering bets on pro-leagues where they owned a team.
The online casino company will emerge after Fertitta used a blank check unit, Landcadia Holdings II, to buy New Jersey-based Golden Nugget Online Gaming. This emerges from a SEC filed with the SEC on June 29. Golden Nugget is now active on the Nasdaq stock exchange under Landcadia Beteiligungen II (LCA). The company will eventually revert to the Golden Nugget name and change its ticker to GNOG.
Lancadia was co-sponsored by Fertitta Entertainment, the owner of the Rockets, which will retain 52 percent of the shares in Golden Nugget, and Jefferies.
Fertitta's new company is valued at $ 745 million, according to the submission.
The U.S. Supreme Court lifted the ban on sports betting in 2018, 18 states allowed betting. There are currently 18 states active, four of which are waiting for start-up operations as officials try to use a market that is expected to grow to $ 8 billion by 2025.
In an interview with CNBC's "Power Lunch" on June 23, Fertitta predicted that the online gambling sector, which could exceed $ 90 billion by 2025, "will expand across the country due to taxes," he said iGaming market is so much more profitable and bigger than the sports games market. "
In addition to activities in New Jersey, Golden Nugget plans to expand in Pennsylvania and Michigan in 2021.
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