Tilman Fertitta is excited about the potential of DraftKings and Wynn stocks.
This was posted on December 22, 2023 at 04:33 AM.
Last updated on: December 22, 2023, 05:16h.
Tilman Fertitta is the dominant figure behind the expanding Golden Nugget casino enterprise, and he holds positive views on two other gaming stocks as the year 2024 approaches.
In a 2020 interview, Tilman Fertitta expressed optimism about the stock performance of DraftKings and Wynn Resorts. (Image: CNBC)
During a conversation with CNBC’s Brian Sullivan, Fertitta expressed his optimism for DraftKings (NASDAQ: DKNG) and Wynn Resorts (NASDAQ: WYNN), both of which he holds significant investments in.
Fertitta stated in the interview that Wynn remains the top gaming company in the US. He believes that Wynn will continue to be successful in Las Vegas, as it has always been a popular destination for business.
On October 31, 2022, it was announced that the leader of Golden Nugget and owner of Houston Rockets obtained a 6.1% share in Wynn, making him the second largest individual stockholder after Elaine Wynn. This sparked rumors that Fertitta may potentially aim to obtain complete ownership of Wynn. However, no such transaction has occurred thus far, but his expressed interest in owning a Las Vegas Strip casino resort is widely known.
According to speculation, Wynn Resorts may be the top choice for Tilman Fertitta.
Possible rewording: It has been rumored that Wynn Resorts is the favored option for Tilman Fertitta.
In October 2022, a document known as Schedule 13G was filed with the Securities and Exchange Commission (SEC), showing that Fertitta Entertainment, Fertitta personally, and another organization bought 6.91 million shares of Wynn.
Depending on exactly when in October 2022 those purchases were made, Fertitta is likely sitting on a modest though unrealized profit in Wynn shares. The stock closed at $87.21 on Oct. 1, 2022 and at $90.42 today. While that suggests lethargic price action in the name over the past year-plus, Fertitta remains optimistic in his outlook on Wynn.
Fertitta expressed his strong optimism about Wynn, stating that it has been consistently trading in the 80s for the past few months and he anticipates a significant increase in its value in the near future.
Based on SEC filings, Fertitta’s Wynn ownership has remained unchanged without any additions or reductions.
Fertitta has a positive outlook on DraftKings as well.
Fertitta informed Sullivan that he holds the most individual shares in DraftKings, although this likely refers to the common stock. The co-founder and CEO, Jason Robins, holds over 90% of a different class of shares with super voting rights.
Fertitta became a significant investor in DraftKings when the online sportsbook acquired his Golden Nugget Online Gaming (GNOG) in a $1.56 billion all-stock agreement that was finalized in May 2022. This deal allowed DraftKings to establish a dominant presence in the domestic iGaming market, thanks to GNOG’s well-established online casino operations in popular areas like New Jersey.
Despite the entry of new competitors like ESPN Bet and Fanatics, he maintains a positive outlook on DraftKings.
According to Fertitta, the sports betting industry will be dominated by four or five companies. However, it is important to note that this industry is only present in a limited number of states, such as California and Texas. As a result, many individuals are currently placing bets through offshore means. Once these larger states legalize sports betting, the profits for these companies will be significantly increased.
