Paddy Power Betfair and Boyd Gaming have reached an agreement to cooperate in targeting sports betting and online gaming opportunities in the United States.
The deal hinges around Paddy Power subsidiary FanDuel, which will provide Boyd Gaming with technology and services needed to run online sports betting and gaming operations under the Boyd brand.
In return, Boyd Gaming will leverage its brick-and-mortar presence across 10 states to grant FanDuel access to additional markets beyond New Jersey under the FanDuel brand. Boyd Gaming also has an agreement in place with MGM Resorts International to further grow its market access to a total of 15 states.
Boyd Gaming stated today that the deal with FanDuel covers all states in which it holds licenses currently and in the future except Nevada. The deal also covers properties included in the Boyd Gaming / MGM gaming deal.
The Irish Times reports Boyd will also acquire a 4% equity stake in FanDuel as a part of the transaction, with the option to increase that stake to 5%.
Boyd Gaming CEO Keith Smith said this about the deal:
“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.”
FanDuel Group CEO Matt King said this:
“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.”
Deal Solves Problem of Access for FanDuel
This agreement solves the problem of access for FanDuel in its pursuit of the growing US sports betting market. As a primarily digital company, FanDuel lacks the brick-and-mortar presence needed in states that have legalized sports betting to date.
FanDuel is partnered with Meadowlands race track in New Jersey, Tioga Downs in New York (pending legislation) and the Greenbrier Resort in West Virginia for retail and online sports betting. These partnerships all work similarly to the Boyd Gaming partnership in that FanDuel provides services in return for access to the market.
As other states legalize sports betting and online gaming, most are likely to also limit licenses to brick-and-mortar providers. By partnering with Boyd Gaming, Paddy Power and FanDuel will be properly equipped to expand to additional US states as legislation is passed across the country.
In short, FanDuel will provide Boyd Gaming with the technology and know-how to run online sports betting in return for Boyd Gaming providing FanDuel with market access.
Paddy Power Betfair Gaining a Foothold in the US Gaming Market
Paddy Power Betfair has moved quickly in recent months to establish a foothold in the burgeoning US market. The company, which has headquarters in Dublin and Ireland, broke ground in the United States by striking a deal with FanDuel back in May to combine their US-based businesses.
The deal, which was finalized last month, gave Betfair US a 61% share in FanDuel with options to increase that stake to 80% after three years and 100% after five years. Now, the deal with Boyd Gaming opens the door for further market penetration for Paddy Power Betfair through FanDuel.
Other major international gambling operators have been moving in on the US market as well. Just this week, the UK’s William Hill announced agreements with 11 casinos to expand its US presence, Canada’s The Stars Group announced plans to offer online and mobile sports betting in New Jersey and GVC Holdings announced a joint venture with MGM Resorts International to target the US market.
The race is on.