Boyd Gaming, FanDuel Group Announce Strategic Partnership
Companies to Establish Sports-Betting, Online Gaming Operations Across the U.S.
LAS VEGAS, Aug. 2, 2018 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) and FanDuel Group – a subsidiary of Paddy Power Betfair plc, a leading international sports betting and gaming operator -- today announced that they have entered into a strategic partnership to pursue sports betting and online gaming opportunities across the United States.
The partnership brings together two of the largest and most geographically diversified companies in the gaming entertainment industry. Boyd Gaming is one of the largest and most experienced companies in the gaming industry, and will operate 29 casinos across 10 states upon the completion of two pending acquisitions. With eight million customers and a presence across 45 states, FanDuel Group is the largest online sports destination in the United States, with a range of products and experiences for all sports fans.
Under terms of the agreement, subject to state law and regulatory approvals, Boyd Gaming 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 Group will establish and operate mobile and online sports-betting and gaming services under the FanDuel brand in the states where Boyd Gaming is licensed.
"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," said Keith Smith, President and Chief Executive Officer of Boyd Gaming. "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."
"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."
This agreement will cover all states where Boyd Gaming holds gaming licenses 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, Boyd Gaming will have access in 15 states nationwide, representing more than 36% of the U.S. population.
The two companies will also engage in extensive co-branding and cross-promotional efforts. FanDuel Group will market Boyd Gaming properties through its existing daily fantasy sports service and future interactive sports betting and gaming services, while Boyd Gaming will promote FanDuel's products to its customer base. FanDuel Group will also provide Boyd Gaming customers access to its existing product line.
Moelis & Company LLC acted as exclusive financial advisor on the strategic partnership.
Forward-looking Statements and Company Information
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as "may," "will," "might," "expect," "believe," "anticipate," "could," "would," "estimate," "continue," "pursue," or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding future performance. In addition, forward-looking statements in this press release include statements regarding: the Company's pending acquisitions; the passage of applicable legislation; that the Company and FanDuel will be in excellent position to successfully capitalize on sports betting; the opportunity to successfully establish market-leading operations; and that benefits from the cross-marketing agreement will be immediate. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include, but are not limited to: the political climate and its effects on consumer spending and its impact on the travel industry; the state of the economy and its effect on consumer spending and the Company's results of operations; the timing for economic recovery, its effect on the Company's business and the local economies where the Company's properties are located; the receipt of legislative, and other state, federal and local approvals for the Company's development projects; whether online gaming will become legalized in various states, the Company's ability to operate online gaming profitably, or otherwise; the consummation of the Company's pending acquisitions on the terms and timing as currently anticipated, or at all; the fact that the Company's expansion, development and renovation projects (including enhancements to improve property performance) are subject to many risks inherent in expansion, development or construction of a new or existing project; the effects of events adversely impacting the economy or the regions from which the Company draws a significant percentage of its customers; competition; litigation; financial community and rating agency perceptions of the Company and its subsidiaries; changes in laws and regulations, including increased taxes; the availability and price of energy, weather, regulation, economic, credit and capital market conditions; and the effects of war, terrorist or similar activity. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and in the Company's other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.
About Boyd Gaming
Founded in 1975, Boyd Gaming Corporation (NYSE: BYD) is a leading geographically diversified operator of 24 gaming entertainment properties in seven states. The Company currently operates nearly 1.4 million square feet of casino space, more than 31,000 gaming machines, 630 table games, 9,400 hotel rooms and more than 280 food and beverage outlets. With one of the most experienced leadership teams in the casino industry, Boyd Gaming prides itself on offering its guests an outstanding entertainment experience, delivered with unwavering attention to customer service. For additional Company information and press releases, visit www.boydgaming.com.
About FanDuel Group
FanDuel Group is an innovative sports-tech entertainment company that is changing the way consumers engage with their favorite sports, teams, and leagues. The premier gaming destination in the United States, FanDuel Group consists of a portfolio of leading brands across gaming, sports betting, daily fantasy sports, advance-deposit wagering, and TV/media, including FanDuel, Betfair US, DRAFT, and TVG. FanDuel Group has a presence across 45 states and 8 million customers. The company is based in New York with offices in California, New Jersey, Florida, Oregon, and Scotland. FanDuel Group is a subsidiary of Paddy Power Betfair plc, a leading international sports betting and gaming operator and a constituent of the FTSE 100 index of the London Stock Exchange.
SOURCE Boyd Gaming Corporation
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