Boyd Gaming Corporation (BYD) and FanDuel Group, the Paddy Power Betfair (PPB) subsidiary created just last month, are uniting to pursue online gaming and sports betting opportunities across the US.
Subject to state law and the necessary regulatory approvals, BYD is to gain a foothold in the online gaming and sports betting scene by leveraging FanDuel technology to operate Boyd Gaming branded services.
In addition, FanDuel is to operate those same services under its own brand in states where BYD is licensed.
Confirming the new strategic partnership, PPB commented in a corporate statement “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% equity stake in FanDuel Group and have an option to purchase a further 1% stake.”
Keith Smith, president and chief executive officer of Boyd Gaming, explained: “Through this partnership, Boyd Gaming and FanDuel Group will be in excellent position to successfully capitalise as sports betting and online gaming expands across the country.
“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.”
Furthermore, both parties are to also embark on dual branding and cross promotional efforts, with FanDuel also providing BYD customer access to its current product line.
BYD, who will operate 29 casinos across 10 states upon the completion of two pending acquisitions, is to promote FanDuel products to its customers, whilst also seeing its properties marketed through existing daily fantasy sports services and future interactive sports betting and gaming services.
“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,” said Matt King, Chief Executive Officer of FanDuel Group. “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.”