FanDuel inks Boyd Gaming sports betting deal
Paddy Power Betfair subsidiary secures the option to expand into 15 US states
Under the agreement, Boyd will launch an online gaming and sports betting platform utilising existing PPB technology, while FanDuel Group will gain access to a total of 15 states where Boyd and market access partners MGM are already licenced.
FanDuel and Boyd will also engage in extensive co-branding and cross-promotional efforts, marketing each other’s products and services through their existing sales channels.
Keith Smith, president and CEO of Boyd Gaming said the two companies would be in an “excellent position to successfully capitalise as sports betting and online gaming expand across the country,”.
Smith added: “We will also see immediate benefits from our cross-marketing agreement with FanDuel, introducing millions of FanDuel customers to Boyd Gaming’s properties nationwide.”
Boyd will also take 4% equity in FanDuel Group as part of the deal, with an option to purchase another 1%.
FanDuel Group CEO Matt King added: “There is incredible momentum in the sports betting space and we look forward to partnering with Boyd Gaming to bring the FanDuel Sportsbook to more customers across the United States.”
Boyd Gaming currently operates 24 casinos in the US but will expand that property portfolio to 29 when it completes the acquisitions of the Valley Forge Casino resort and the four casino properties owned by the Pinnacle group. The deal gives FanDuel access to almost 36% of the US population.
Assessing the deal’s implications, Chris Grove from Eilers & Krejcik Gaming said: “We think this deal is a significant win for Paddy Power Betfair. Without knowing the terms, it’s tough to evaluate Boyd’s upside, but we find it tough to believe that Boyd didn’t extract a significant price given its superior leverage.”