Boyd Gaming hails “attractive growth opportunity” as $170m Pala deal completes

Boyd Gaming has completed the acquisition of the Pala Interactive business in a deal totaling $170m.

The Las Vegas-headquartered operator has confirmed the multi-million-dollar deal has now concluded after the acquisition was initially agreed back in March.

At the time, the deal was heralded by Boyd as the “next phase” in its strategy to become an igaming operator, a push which aims to give the firm full control over its technology, product development, and customer experience.

Boyd also aims to integrate the online casino offering into its land-based operations with the aim of provide further monetization opportunities through its customer database.

Pala Interactive operates B2B and B2C services in both real-money and social gaming across the US and Canada, as well as managed services.

Boyd Gaming CEO Keith Smith waxed lyrical about the possibilities afforded to the firm through the acquisition and the potential future of the business.

“Online casino gaming is an attractive growth opportunity for our company, and the acquisition of Pala Interactive provides us with the technology, products, and expertise to create a profitable regional online casino business,” Smith said.

“We look forward to working with the Pala Interactive team in executing our online casino gaming strategy, which will complement our existing land-based operations and further expand our nationwide customer base,” he added.

The acquisition comes during a positive period for Boyd Gaming, as highlighted in its recent Q3 2022 results, with the firm reporting year-on-year (YOY) revenue growth of 4%.

Third-quarter revenue amounted to $877.3m, up from a prior Q3 2021 figure of $843.1m, with net income rising 13% YOY to $157m over the same period.

Boyd’s adjusted EBITDA decreased slightly during Q3 to $337.7m, from a prior Q3 2021 high of $340.7m.