Houlihan Lokey Advises Landcadia Holdings II

Houlihan Lokey is pleased to announce that Landcadia Holdings II, Inc., has completed its acquisition of Golden Nugget Online Gaming (GNOG). The transaction closed on December 29, 2020.

GNOG is a leading online gaming and digital sports entertainment company that is considered a market leader by its peers and was first to bring Live Dealer and Live Casino Floor to the U.S. online gaming market. It was the past recipient of 15 eGaming Review North America Awards, including the coveted Operator of the Year Award in 2017, 2018, 2019, and 2020. GNOG operates within two primary verticals: (i) iGaming, which operates online casino games such as electronic slot-based games, video poker, and live dealer table games (e.g., blackjack, roulette, baccarat, etc.) via its proprietary Live Dealer Studio offering, and (ii) Sports Betting, which takes wagers (include live in-game bets) on a variety of domestic and international sporting events.

Prior to the business combination, GNOG was a wholly owned subsidiary of Golden Nugget Casinos, a subsidiary of Fertita Entertainment, Inc. (FEI), a diversified dining, hospitality, and gaming company owned by Chairman and CEO Tilman J. Fertitta, whose assets include Landry’s, the Houston Rockets NBA franchise, and Golden Nugget Casinos. Landcadia Holdings II was a special purpose acquisition company (SPAC) sponsored by FEI and Jefferies Financial Group, Inc.

Upon completion of the business combination, Landcadia Holdings II changed its name to Golden Nugget Online Gaming. The company’s shares of Class A common stock commenced trading on the Nasdaq Stock Market under the ticker symbol “GNOG” on December 30, 2020. Mr. Fertitta will continue to serve as GNOG’s CEO and Chairman of the board. Thomas Winter will remain as President and the rest of the GNOG team will continue in their respective roles. Given the related-party nature of the business combination, the board of directors of Landcadia formed a transaction committee comprising independent directors to consider the deal.

Houlihan Lokey served as the financial advisor to the transaction committee and rendered an opinion concerning the fairness—from a financial point of view—of the aggregate consideration paid in connection with the business combination.

This transaction highlights Houlihan Lokey’s expertise and advisory capabilities in the fast-growing U.S. online gaming and sports betting industry through its Technology, Media & Telecom (TMT) Group as well as its expertise in providing financial advisory services—including the issuance of financial opinions—in conflict-prone situations through its Board and Special Committee Advisory practice.