Fertitta just had an exit of one of his companies. Photo by J. Thomas Ford

The acquisition of Tilman Feritta’s Golden Nugget Online Gaming, Inc. (Nasdaq: GNOG) by digital sports entertainment and gaming company DraftKings Inc. (Nasdaq: DKNG) is complete.

DraftKings announced that it has completed the acquisition, worth at approximately $1.6 billion (dubbed the “GNOG Acquisition”) on Thursday, May 5.

“This will be an alliance unlike any other in the digital sports, entertainment and online gaming industry,” Fertitta said in a statement . “Now that the acquisition is completed, I look forward to what the future will bring for our combined company and am confident this relationship will be a huge success.”

DraftKings notes in a press release that this GNOG Acquisition will allow the company to leverage Golden Nugget’s established brand to “broaden its reach into new customer segments and enhance the combined company’s iGaming product offerings through DraftKings’ vertically integrated tech stack and Golden Nugget Online Gaming’s unique capabilities – including Live Dealer.”

Notably, the GNOG Acquisition will not include brick and mortar Golden Nugget casinos; Fertitta will maintain ownership of those entities.

The GNOG Acquisition will deliver “significant” benefits to DraftKings, as well as expected savings of $300 million, a release notes. The company aims to deploy a multi-brand approach meant to enhance cross-selling opportunities and drive increased revenue.

Additionally, DraftKings and Fertitta Entertainment expect to rebrand some current and future retail sportsbook locations at Fertitta Entertainment-owned Golden Nugget properties into DraftKings sportsbooks.

As CultureMap previously reported, DraftKings' agreement with Fertitta Entertainment will provide for it to become the exclusive daily fantasy sports, sports betting, and iGaming partner of the Houston Rockets. Additionally, if sports betting becomes legal in Texas, DraftKings will open a sportsbook at the Toyota Center.

As the Houston Chronicle reports, DraftKings, headquartered in Boston, more than doubled its revenues to nearly $1.3 billion in 2021 from about $615 million in 2020, according to SEC filings. Its net loss widened to about $1.5 billion from $1.2 billion in 2020.

“Acquiring Golden Nugget Online Gaming gives us synergies across our business,” said Jason Robins, chairman and CEO of DraftKings, in a statement. “We anticipate that this acquisition will provide meaningful revenue uplift by utilizing our data-driven marketing capabilities and a dual brand iGaming strategy, gross margin improvement opportunities, and cost savings across external marketing and SG&A. I am proud to welcome the Golden Nugget Online Gaming team to the DraftKings family.”

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This article originally ran on CultureMap.

Tilman Fertitta's online gambling biz has changed hands. Photo by J. Thomas Ford

Houston businessman sells online gaming casino in $1.56B deal with fantasy sports tech company

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DraftKings, the nationally renown fantasy sports and online sportsbook company (Nasdaq: DKNG), announced it will acquire Houston billionaire Tilman Fertitta's Golden Nugget Online Gaming, Inc. (Nasdaq: GNOG) in an all-stock transaction valued at $1.56 billion. In addition, DraftKings has reached an agreement with Fertitta Entertainment on a partnership with the Houston Rockets, Golden Nugget casinos, and the Landry's vast network of restaurants.

"Our acquisition of Golden Nugget Online Gaming, a brand synonymous with iGaming and entertainment, will enhance our ability to instantly reach a broader consumer base, including Golden Nugget's loyal 'iGaming-first' customers," Jason Robins, DraftKings' CEO and chairman of the board, said in a statement. "We look forward to Tilman being an active member of our Board and one of our largest shareholders."

Golden Nugget Online Gaming began operating in New Jersey in 2013. The company offers online gaming such as blackjack and slot machines that are accessible by computers, tablets, and smartphones. Live dealers enhance the experience for players.

Fertitta took Golden Nugget Online Gaming public in 2020. At the time, the deal valued the company at approximately $745 million. Fertitta currently owns approximately 46 percent of the shares in GNOG, according to a press release, and serves as its chairman and CEO.

"This transaction will add great value to the shareholders as two market leaders merge into a leading global player in digital sports, entertainment and online gaming," Fertitta said. "We believe that DraftKings is one of the leading players in this burgeoning space and couldn't be more excited to lock arms with Jason and the DraftKings family across our entire portfolio of assets, including the Houston Rockets, the Golden Nugget casinos, and Landry's vast portfolio of restaurants. This is a strong commercial agreement for both companies."

DraftKings' agreement with Fertitta Entertainment will provide for it to become the exclusive daily fantasy sports, sports betting, and iGaming partner of the Houston Rockets. Additionally, if sports betting becomes legal in Texas, DraftKings will open a sportsbook at the Toyota Center.

The boards of directors of both directors of both companies have approved the transaction, which is subject to regulatory approvals. It is expected to close in the first quarter of 2022.

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This article originally ran on CultureMap.

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Houston company premieres new platform for gig economy workforce

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As the independent workforce continues to grow, a Houston-based company is aiming to connect these workers with companies that match their specific needs with a new digital platform.

FlexTek, a 14-year old recruiting and staffing company, launched a first gig site tailored to the needs of the individual worker. The platform, Workz360, is built to be able to manage projects, maintain quality control, and manage billing and year-end financial reporting.The company is also working to expanding the platform to provide infrastructure to assist independent workers with education, access to savings programs, tax compliance through vetted third-party CPA firms, and hopes in the future to assist with access to liability and medical insurance.

With a younger workforce and a shifting economy, the “gig economy,” which is another way to describe how people can earn a living as a 1099 worker, offers an alternative option to the corporate grind in a post-pandemic workscape. Chief Marketing Officer Bill Penczak of Workz360 calls this era “Gig 2.0,” and attributes the success of this type of workforce to how during the COVID-19 pandemic people learned how to work, and thrive in non-traditional work environments. The site also boasts the fact it won’t take a bite out of the worker’s pay, which could be an attractive sell for many since other sites can take up to 65 percent of profit.

“In the past few years, with the advent of gig job platforms, the Independent workers have been squeezed by gig work platforms taking a disproportionate amount of the workers’ income,” said FlexTek CEO and founder Stephen Morel in a news release. “As a result, there has been what we refer to as ‘pay padding,’ a phenomenon in which workers are raising their hourly or project rates to compensate for the bite taken by other platforms.

"Workz360 is designed to promote greater transparency, and we believe the net result will be for workers to thrive and companies to save money by using the platform,” he continues.

As the workforce has continued to change over the years, a third of the current U.S. workforce are independent workers according to FlexTek, workers have gained the ability to have more freedom where and how they work. Workz360 aims to cater to this workforce by believing in a simple mantra of treating your workers well.

“We’ve had a lot of conversations about this, but we like the Southwest Airlines model,” Penczak tells InnovationMap. “Southwest Airlines treats their people very well, and as a result those employees treat the passengers really well. We believe the same thing holds true. If we can provide resources, and transparency, and not take a bite out of what the gig worker is charging, then we will get the best and the brightest people since they feel like they won’t be taken advantage of. We think there is an opportunity to be a little different and put the people first.”

NASA launches new research projects toward astronauts on ISS

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For the 26th time, SpaceX has sent up supplies to the International Space Station, facilitating several new research projects that will bring valuable information to the future of space.

On Saturday at 1:20 pm, the SpaceX Dragon spacecraft launched on the Falcon 9 rocket from NASA’s Kennedy Space Center in Florida — bringing with it more than 7,700 pounds of science experiments, crew supplies, and other cargo. The anticipated docking time is Sunday morning, and the cargo spacecraft will remain aboard the ISS for 45 days, according to a news release from NASA.

Among the supplies delivered to the seven international astronauts residing on the ISS are six research experiments — from health tech to vegetation. Here's a glimpse of the new projects sent up to the scientists in orbit:

Moon Microscope

Image via NASA.gov

Seeing as astronauts are 254 miles away from a hospital on Earth — and astronauts on the moon would be almost 1,000 times further — the need for health technology in space is top of mind for researchers. One new device, the Moon Microscope, has just been sent up to provide in-flight medical diagnosis. The device includes a portable hand-held microscope and a small self-contained blood sample staining tool, which can communicate information to Earth for diagnosis.

"The kit could provide diagnostic capabilities for crew members in space or on the surface of the Moon or Mars," reads a news release. "The hardware also may provide a variety of other capabilities, such as testing water, food, and surfaces for contamination and imaging lunar surface samples."

Fresh produce production

Salads simply aren't on the ISS menu, but fresh technology might be changing that. Researchers have been testing a plant growth unit on station known as Veggie, which has successfully grown a variety of leafy greens, and the latest addition is Veg-05 — focused on growing dwarf tomatoes.

Expanded solar panels

Thanks to SpaceX's 22nd commercial resupply mission in 2021, the ISS installed Roll-Out Solar Arrays. Headed to the ISS is the second of three packages to complete the panels that will increase power for the station by 20 to 30 percent. This technology was first tested in space in 2017 and is a key ingredient in future ISS and lunar development.

Construction innovation

Image via NASA.gov

Due to the difference of gravity — and lack thereof — astronauts have had to rethink constructing structures in space. Through a process called extrusion, liquid resin is used to create shapes and forms that cannot be created on Earth. Photocurable resin, which uses light to harden the material into its final form, is injected into pre-made flexible forms and a camera captures footage of the process, per the news release.

"The capability for using these forms could enable in-space construction of structures such as space stations, solar arrays, and equipment," reads the release. "The experiment is packed inside a Nanoracks Black Box with several other experiments from the Massachusetts Institute of Technology Media Lab and is sponsored by the ISS National Lab."

Transition goggles

It's a bizarre transition to go from one gravity field to another — and one that can affect spatial orientation, head-eye and hand-eye coordination, balance, and locomotion, and cause some crew members to experience space motion sickness, according to the release.

"The Falcon Goggles hardware captures high-speed video of a subject’s eyes, providing precise data on ocular alignment and balance," reads the release.

On-demand nutrients

Image via NASA.gov

NASA is already thinking about long-term space missions, and vitamins, nutrients, and pharmaceuticals have limited shelf-life. The latest installment in the five-year BioNutrients program is BioNutrients-2 , which tests a system for producing key nutrients from yogurt, a fermented milk product known as kefir, and a yeast-based beverage, per the release.

"The researchers also are working to find efficient ways to use local resources to make bulk products such as plastics, construction binders, and feedstock chemicals. Such technologies are designed to reduce launch costs and increase self-sufficiency, extending the horizons of human exploration," reads the release.

3 Houston innovators to know this week

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Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from esports to biomaterials — recently making headlines in Houston innovation.

Zimri Hinshaw, CEO of BUCHA BIO

Zimri T. Hinshaw, CEO of BUCHA BIO, joins the Houston Innovators Podcast to discuss how he's planning to scale his biomaterials startup to reduce plastic waste. Photo courtesy of BUCHA BIO

After raising a seed round of funding, BUCHA BIO is gearing up to move into its new facility. The biomaterials company was founded in New York City in 2020, but CEO Zimri T. Hinshaw shares how he started looking for a new headquarters for the company — one that was more affordable, had a solid talent pool, and offered a better quality of life for employees. He narrowed it down from over 20 cities to two — San Diego and Houston — before ultimately deciding on the Bayou City.

Since officially relocating, Hinshaw says he's fully committed to the city's innovation ecosystem. BUCHA BIO has a presence at the University of Houston, Greentown Labs, and the East End Maker Hub — where the startup is building out a new space to fit the growing team.

"By the end of this month, our laboratories will be up and running, we'll have office space adjacent, as well as chemical storage," Hinshaw says on the Houston Innovators Podcast. Listen to the episode and read more.

Kelly Klein, development director of Easter Seals Greater Houston

A nonprofit organization has rolled out an esports platform and event to raise awareness and funding for those with disabilities. Photo via Easter Seals

For many video games is getaway from reality, but for those with disabilities — thanks to a nonprofit organization —gaming can mean a lot more. On Saturday Dec. 3 — International Day of Persons with Disabilities — from 1 to 9 pm, Easter Seals Greater Houston will be joining forces with ES Gaming for the inaugural Game4Access Streamathon.

Gaming helps enhance cognitive skills, motor skills, improve mental well-being, and can help reduce feelings of social isolation due to the interactive nature of playing with others.

“This is really a unique way for (people) to form a community without having to leave their house, and being part of an inclusive environment,” says Kelly Klein, development director of Easter Seals Greater Houston. ”The adaptive equipment and specialized technology just does so many miraculous things for people with disabilities on so many levels — not just gaming. With gaming, it is an entrance into a whole new world.” Read more.

John Mooz, senior managing director at Hines

Levit Green has announced its latest to-be tenant. Photo courtesy

Levit Green, a 53-acre mixed-use life science district next to the Texas Medical Center and expected to deliver this year, has leased approximately 10,000 square feet of commercial lab and office space to Sino Biological Inc. The Bejing-based company is an international reagent supplier and service provider. Houston-based real estate investor, development, and property manager Hines announced the new lease in partnership with 2ML Real Estate Interests and Harrison Street.

“Levit Green was meticulously designed to provide best-in-class life science space that can accommodate a multitude of uses. Welcoming Sino Biological is a testament to the market need for sophisticated, flexible space that allows diversified firms to perform a variety of research,” says John Mooz, senior managing director at Hines, in a press release. “Sino is an excellent addition to the district’s growing life science ecosystem, and we look forward to supporting their continued growth and success.” Read more.Read more.