American casino operator Boyd Gaming Corporation has announced the signing of a deal that is to see its Boyd Interactive Gaming Incorporated subordinate pay some $170 million in order to fully acquire iGaming platform provider Pala Interactive LLC.
The Las Vegas-headquartered firm used an official Monday press release to declare that the arrangement ‘is expected to close by the first quarter of 2023’ subject to its receipt of ‘all required regulatory approvals’ and is being financed via ‘a combination of cash on hand and the company’s existing credit agreement’.
Boyd Gaming Corporation is already responsible for 28 land-based gaming properties spread across ten American states and asserted that the transaction, which is to include any subsidiaries of Pala Interactive LLC, will moreover be required to fulfil a range of ‘customary closing conditions.’ The Nevada firm went on to pronounce that the purchase will advance its own ‘iGaming strategy’ by granting it immediate access to a range of proprietary social and real-money online gaming solutions already utilized by operators in the United States and Canada.
Keith Smith (pictured) serves as the President and Chief Executive Officer for New York-listed Boyd Gaming Corporation and he used the press release to explain that the range of business-to-consumer and business-to-business technologies already offered by Pala Interactive LLC runs to player account management systems as well as casino, social and poker platforms. The boss furthermore pronounced that this portfolio is destined to complement his company’s own iGaming platform via the addition of ‘a full suite of managed services’ and allow the advance to ‘personalize the customer experience’ so as to directly engage with guests.
Read a statement from Smith…
“The acquisition of Pala Interactive LLC marks the next phase in the ongoing execution of our iGaming strategy, providing us full control over the technology, development and customer experience. By integrating online casinos with our existing land-based operations, we will be able to further leverage and monetize our expansive customer database and the amenities of our nationwide portfolio of properties to drive growth in both our land-based and iGaming operations.”
Established in 2013, Pala Interactive LLC currently supplies business-to-business services to iGaming operators in eight American states while running business-to-consumer offerings in New Jersey and Canada. Headquartered in the small San Diego suburb of Pala, the enterprise can additionally deliver an integrated online sportsbetting platform alongside a portfolio of marketing support tools.
Smith proclaimed that it ‘makes sense’ for Boyd Gaming Corporation to acquire Pala Interactive LLC ‘given our nationwide geographic distribution, significant database and established loyalty program’ and subsequently ‘pursue a direct approach with our iGaming operations’. He also forecast that this should eventually allow his newly-expanded firm ‘to create a cost-effective and profitable regional iGaming business.’
The statement from Smith read…
“While the acquisition of Pala Interactive LLC supports our iGaming strategy, we remain fully committed to our sportsbetting partnership with FanDuel Group, which has allowed us to participate in the nationwide expansion of sportsbetting. We look forward to welcoming the Pala Interactive LLC team to our company and building a highly successful online gaming business in the years ahead.”