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The billionaire said he will continue to hold on to the stock of the new company for at least a year after the deal closes. Fertitta will also join the DraftKings board.

The deal gives DraftKings access to Golden Nugget Online's 5 million customers, who are dependable online casino players. The gaming industry anticipates customers who bet in online casino games will be critical to its future revenue growth. Fertitta, and others, have said iGaming customers are worth seven times the value of a sports betting customer. On DraftKings second-quarter earnings conference call, CEO Jason Robins said iGaming provides an opportunity to diversify the company's offering beyond sports seasons.

However, it has struggled to win customers to its casino play platform. The company will be able to get promotional and marketing consideration with Fertitta's Houston Rockets, Landry's restaurants and Golden Nugget brick-and-mortar casinos. Selling was the only option for Golden Nugget Online, as it only has significant market share in New Jersey and "didn't have the balance sheet to compete," said a gaming industry analyst who asked to remain anonymous since they didn't have approval to speak on the record.

DraftKings has been looking to diversify its revenue beyond fantasy sports and sports wagering. By renting a server from us, you're guaranteed that your server will be online , with zero lag.

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