Boyd CEO Keith Smith expects FanDuel Sportsbook to demonstrate strength in Indiana, similar to that which has led it to market-leading positions in New Jersey and Pennsylvania.
Smith said during Tuesday’s quarterly earnings call that he’s pleased with what he’s seen so far from the Flutter-owned company. Boyd has a market-access agreement that lets FanDuel launch wherever the casino giant operates.
FanDuel Sportsbook took a “commanding market lead” in Pennsylvania with more than half of handle in September, Smith said.
The retail sportsbooks at Boyd’s four casinos in Indiana and Iowa – Blue Chip and Belterra in Indiana and the two Diamond Jo casinos in Iowa – have helped expand Boyd’s customer base, he added.
The sportsbooks drove an influx of new customers and increased visitor traffic at all four of the properties. Sports betting had a similar impact in Pennsylvania and Mississippi, Smith said.
Significant revenue a year away for Boyd
It’ll be at least until late-2020 that legal sports betting revenue begins to move the needle for Boyd, Smith said. Given the launch costs that can be involved in the US sports betting market, that comes as little surprise.
Boyd gets a different cut of revenue from FanDuel in all of their states. The cut changes based on retail or online operations as well.
Sports betting revenue needs to settle in as it’s still in the early innings, Smith said.
Flutter-Stars Group merger ‘big positive’
A merger between FanDuel’s parent company Flutter and The Stars Group is a big positive, Smith said, passing along congratulations to Flutter management.
Boyd’s partnership with the FanDuel brand is strong, he said. Becoming a larger, stronger organization is all upside for Boyd, Smith added.
The merged company will give Boyd access to more capabilities and brands, according to Smith. Flutter is paying $6 billion in the all-share takeover of The Stars Group. Flutter will be the majority owner of the merged company.
Also owned by Flutter is the massively popular Paddy Power Betfair brand. The Stars Group owns poker giant PokerStars and recently bought the UK betting giant Sky Betting & Gaming.
