Boyd Gaming Corporation and FanDuel Group – a subsidiary of Paddy Power Betfair plc, announced Thursday that they have formed a strategic alliance to pursue sports betting and online gaming opportunities across the United States.
The partnership brings together two of the largest and most geographically diversified companies in the gaming entertainment industry, a joint statement claims.
Boyd Gaming is one of the largest and most experienced companies in the gaming industry, and will operate 29 casinos across 10 states upon the completion of two pending acquisitions. With eight million customers and a presence across 45 states, FanDuel Group is the largest online sports destination in the United States, with a range of products and experiences.
Subject to individual state law and regulatory approvals, Boyd Gaming will establish a presence in the online gaming and sports wagering industry by leveraging FanDuel Group’s technology and related services to operate Boyd Gaming-branded mobile and online sports-betting and gaming services.
In turn, FanDuel Group will establish and operate mobile and online sports-betting and gaming services under the FanDuel brand in the states where Boyd Gaming is licensed.
“Through this partnership, Boyd Gaming and FanDuel Group will be in excellent position to successfully capitalize as sports betting and online gaming expand across the country,” said Keith Smith, President and Chief Executive Officer of Boyd Gaming.
“By joining forces with FanDuel’s nationally-known brand, as well as their considerable technical expertise and resources, we will be positioned to build market-leading sports-betting and online gaming operations in each state as they move forward with these new forms of entertainment. We will also see immediate benefits from our cross-marketing agreement with FanDuel, introducing millions of FanDuel customers to Boyd Gaming’s properties nationwide.”
Matt King, Chief Executive Officer of FanDuel Group responded: “With more than 40 years of experience, Boyd Gaming is a leader in the gaming and entertainment space, and a natural partner as we continue to build a leading position in the sports betting market. 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.”
This agreement will cover all states where Boyd Gaming holds gaming licenses currently and in the future, excluding Nevada. It also covers states included under Boyd Gaming’s market-access agreement with MGM Resorts International. Upon completion of Boyd Gaming’s pending acquisitions of the four Pinnacle properties and Valley Forge, Boyd Gaming will have access in 15 states nationwide, representing more than 36 percent of the U.S. population.
The two companies will also engage in extensive co-branding and cross-promotional efforts, the joint statement advises. FanDuel Group will market Boyd Gaming properties through its existing daily fantasy sports service and future interactive sports betting and gaming services, while Boyd Gaming will promote FanDuel’s products to its customer base. FanDuel Group will also provide Boyd Gaming customers access to its players.
In a statement to the London stock exchange Friday, Paddy Power Befair advised:
“The Group today announces that its subsidiary, FanDuel Group, has entered into an agreement with Boyd Gaming to co-operate in the U.S. sport betting and online casino markets.
“Under the terms of the agreement, subject to favourable legislation and regulatory approvals, FanDuel will gain market access for its sports book and online gaming products in several states and will provide Boyd Gaming with technology and related services to operate Boyd Gaming-branded mobile and online sports betting and gaming services, in those states.
“This agreement will cover all states where Boyd Gaming currently holds gaming licenses, excluding Nevada, and any states in which it acquires a gaming license or market access in the future, including under Boyd Gaming’s recently announced market-access agreement with MGM Resorts International.
“This agreement, along with FanDuel’s existing market access deals in New Jersey, New York and West Virginia, means it will potentially have access to 15 states nationwide.
“As part of the transaction, Boyd Gaming will also take a 4 percent equity stake in FanDuel Group and have an option to purchase a further 1 percent stake.”