Boyd Gaming and FanDuel have entered into a strategic partnership to pursue sports betting and online gaming opportunities across the United States. Under the terms of the agreement, subject to state law and regulatory approvals, Boyd 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 will establish and operate mobile and online sports-betting and gaming services under the FanDuel brand in the states where Boyd Gaming is licensed. 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.
This agreement will cover all states where Boyd Gaming holds gaming licences 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, the company will have access in 15 states nationwide, representing more than 36% of the US population.
The two companies will also engage in extensive co-branding and cross-promotional efforts. FanDuel will market Boyd properties through its existing daily fantasy sports service and future interactive sports betting and gaming services, while Boyd will promote FanDuel’s products to its customer base. FanDuel will also provide Boyd customers access to its existing product line.
“Through this partnership, Boyd Gaming and FanDuel Group will be in excellent position to successfully capitalise as sports betting and online gaming expand across the country,” said Keith Smith, Boyd president and CEO.
He added: “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, FanDuel CEO, remarked: “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.”