Tilman Fertitta Bullish on DraftKings, Wynn Heading Into 2024

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Posted on: December 22, 2023, 04:33h. 

Last updated on: December 22, 2023, 05:16h.

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Tilman Fertitta controls nan increasing Golden Nugget casino empire, but he’s constructive connected a brace of different gaming equities arsenic 2024 looms.

Fertitta CommandersTilman Fertitta successful a 2020 interview. He’s bullish connected shares of DraftKings and Wynn Resorts. (Image: CNBC)

In an question and reply pinch CNBC’s Brian Sullivan, Fertitta waxed bullish connected DraftKings(NASDAQ: DKNG) and Wynn Resorts (NASDAQ: WYNN) — 2 stocks successful which he’s among nan largest individual investors.

I deliberation Wynn is still your premier gaming institution successful nan United States,” said Fertitta successful nan interview. “If there’s business successful Vegas, which there’s ever been, Wynn is going to do nan astir business.”

On Oct. 31, 2022, it was revealed that nan Golden Nugget leader and Houston Rockets proprietor took a 6.1% liking successful Wynn, making him nan second-largest individual shareholder successful nan banal down only Elaine Wynn. That touched disconnected speculation that Fertitta could yet move to get Wynn outright. Such a transaction hasn’t materialized arsenic of yet, but his desire to ain a Las Vegas Strip casino edifice is well-documented.

Wynn Could Be Winner for Fertitta

A 2022 Schedule 13G filing pinch nan Securities and Exchange Commission (SEC) indicates Fertitta Entertainment, Fertitta himself, and different entity purchased 6.91 cardinal shares of Wynn successful October 2022.

Depending connected precisely erstwhile successful October 2022 those purchases were made, Fertitta is apt sitting connected a humble though unrealized profit successful Wynn shares. The banal closed astatine $87.21 connected Oct. 1, 2022 and astatine $90.42 today. While that suggests lethargic value action successful nan sanction complete nan past year-plus, Fertitta remains optimistic successful his outlook connected Wynn.

“I’m very bullish connected Wynn,” added Fertitta. “It’s been lingering down location successful nan 80s for nan past fewer months and I expect for it to make a immense move soon.”

According to SEC filing activity, Fertitta has not added to aliases reduced his Wynn stake.

Fertitta Constructive connected DraftKings, Too

Fertitta told Sullivan he’s nan largest individual shareholder of DraftKings equity, though that’s apt successful reference to nan communal banal arsenic co-founder and CEO Jason Robins holds much than 90% of different people of shares that person ace voting rights.

Fertitta’s position arsenic awesome DraftKings investors came astir done nan online sportsbook usability acquiring his Golden Nugget Online Gaming (GNOG) — a $1.56 cardinal all-stock deal that closed successful May 2022. That transaction paved nan measurement for DraftKings to go 1 of nan leaders by marketplace stock successful home iGaming manufacture owing to GNOG’s established net casino footprint successful marquee markets specified arsenic New Jersey.

He remains bullish connected DraftKings moreover arsenic caller competitors, specified arsenic ESPN Bet and Fanatics, participate nan arena.

“It’s gonna really beryllium 4 aliases 5 companies that are gonna ain nan sports betting industry,” Fertitta told Sullivan. “What you person to retrieve astir that manufacture is it’s only successful a fewer states. It’s not successful California. It’s not successful Texas. So galore group are betting offshore now that erstwhile these large states get it, nan magnitude of money that’s going to travel to nan bottommost statement for these companies is extremely, highly huge.”

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