FanDuel Just Extended Its Sports Betting Reach By A Lot With Boyd Gaming Deal

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FanDuel extends sports betting reach

Though newly configured and still settling into the sports betting world, FanDuel Group is on the verge of an explosion nationwide.

In a joint announcement Thursday, FanDuel, the American arm of Paddy Power Betfair, and Boyd Gaming have “entered into a strategic partnership to pursue sports betting and online gaming opportunities across the United States,” according to a press release.

Across the country, Boyd properties that will have 10 online and mobile sports betting will be powered by FanDuel Group, which, in turn, transforms from a relatively small footprint for sports betting to much a larger one.

About the FanDuel deal

Both the FanDuel Group and Boyd Gaming brands will be alive and kicking, perhaps even simultaneously in the same states, provided laws and regulations allow it.

A statement from Paddy Power Betfair indicated that FanDuel Group will “gain market access” for its sportsbook and online gaming products in states where Boyd Gaming currently holds gaming licenses, excluding Nevada, while providing Boyd with technology “and related services” to operate Boyd-branded mobile and online sports betting.

The agreement covers states included in Boyd’s market-access agreement with MGM Resorts International, an unprecedented partnership” that was announced this week.

All told, Boyd Gaming could have access in 15 states.

Additionally, FanDuel Group and Boyd Gaming will have “extensive” co-branding and cross-promotional efforts. For example, FanDuel Group will publicize Boyd Gaming via its daily fantasy sports operation and future sports betting and gaming services. Boyd Gaming, meanwhile, will promote its new partner’s products to its customer base.

Boyd Gaming customers will also have access to FanDuel Group’s products. The company also acquired four percent of FanDuel as part of the deal.

What they’re saying

In the joint announcement, both Boyd and FanDuel Group emphasized how this deal opens countless doors for the two companies.

For Keith Smith, president and CEO of Boyd Gaming, the deal offers an opportunity to take advantage of an ever-expanding world of legalized sports betting.

“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 echoed Smith’s sentiments, adding that Boyd Gaming’s standing as a season gaming veteran helps FanDuel Group take a monster step forward just a few months after being acquired by PPB.

“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.”

Which states first?

The reach of Boyd Gaming and MGM is pretty wide.

Among states that have legalized sports betting, New Jersey (MGM) and Pennsylvania (Boyd) both have properties that would allow FanDuel to introduce its sports betting platform. It’s not clear if Boyd will seek market access via Borgata; FanDuel is already in NJ thanks to a deal with The Meadowlands.

Both Boyd and MGM have casinos in Mississippi, which had regulated wagering go live this week, starting with two MGM resorts. (Online wagering faces a more uncertain future there, however.

A handful of other states have introduced sports betting bills this year and feature either Boyd or MGM properties:

MGM also has a pending acquisition of Empire City Casino in New York, where betting at commercial casinos is technically legal though faces an uncertain future. Maryland and Massachusetts both expect to introduce bills in 2019.