In February, Fertitta Entertainment announced plans to combine with Fast in a deal that would involve selling a minority stake in the business and listing it on the New York Stock Exchange. The expected deadline for closing the deal was initially set for the second half of 2021, with a termination date of 1 November. However, the terms of the merger were later amended to change the termination date to 1 December.
On 1 December, Fertitta Entertainment notified Fast of its intention to terminate the agreement. However, Fast argued that Fertitta Entertainment did not have the authority to cancel the deal as it had not fulfilled its obligation of providing financial statements by the required deadline of 31 March. Fast claimed that this failure to provide the necessary financial statements was the primary reason for the deal not closing in time.
Fast declared the notice of termination invalid and demanded that Fertitta Entertainment withdraw it immediately in order to proceed with the merger agreement. Fast also threatened to take legal action if the breach was not remedied promptly, citing potential irreparable harm to the SPAC and its investors.
Fertitta Entertainment previously owned Golden Nugget Online Gaming (GNOG), which was later spun off through a SPAC merger with Landcadia Holdings II. Subsequently, DraftKings agreed to acquire GNOG for $1.56bn, which would grant access to the customer database of the Golden Nugget land-based business. Tilman Fertitta is set to join DraftKings’ board as part of the deal.
