After the recent purchase of a controlling stake and completion of its merger with daily fantasy sports giant, FanDuel, European online and retail sports betting and gaming operator, Paddy Power Betfair PLC (PPB:London), announced Friday that its newly acquired subsidiary has agreed a deal with Las Vegas-based gaming and hospitality company, Boyd Gaming Corp (NYSE:BYD), to jointly operate in the online casino and US sports betting markets.
Acess to the U.S. sports betting market:
According to the joint press release…
Under the terms of the agreement, the daily fantasy sports provider and bookmaker’s online gaming products and sports book will obtain access to “several US states” where Boyd Gaming currently possesses gaming licenses, with the exception of Nevada.
Also covered are states included under the market-access agreement between Boyd Gaming and MGM Resorts International, which on Tuesday inked a partnership deal with the National Basketball Association (NBA) only a day after finalizing a related joint venture agreement with British online sports betting firm GVC Holdings.
It [Boyd Gaming] will furthermore receive the fantasy sports company’s technology to run its branded online and mobile sports betting and gaming services.
President and Chief Executive Officer of Boyd Gaming, Keith Smith, said…
“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.”
“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,” explained Smith.
Including market access deals already established in New York, West Virginia and New Jersey, with this most recent deal, 15 U.S. states will now be accessible to the betting site [FanDuel].
Further details of the agreement include a 4 percent stake in FanDuel for Boyd Gaming, alongside an option to acquire an additional 1 percent equity state.
Friday afternoon, Paddy Power shares were up 0.0094 percent at US$53.05.
At the time of the May announcement, Dublin-headquartered Paddy Power Betfair communicated that the completion of the acquisition will leave the firm better placed to target the prospective United States sports betting market in the wake of the May 14, 2018 decision by the Supreme Court declaring the federal Professional and Amateur Sports Protection Act (PASPA) of 1992 unconstitutional.