Boyd Gaming inks $170m all-cash Pala Interactive deal

Boyd Gaming has agreed a $170m all-cash deal to acquire B2B and B2C supplier Pala Interactive, the Nasdaq listed firm has revealed.

The land-based casino and igaming operator has said its all-cash deal will be financed by a combination of “cash on hand” as well as through so-called “revolver” agreements with creditors.

The transaction is expected to close by Q1 2023, subject to full regulatory approval.

Boyd has said the acquisition of Pala will provide it with control over its “igaming economics, technology and development”, as well as the addition of an experienced management team with operational and product development expertise.

“It provides full ownership of customer experience and enhanced ability to tie to land-based offerings and monetize our significant B Connected database,” Boyd said in its investor presentation, explaining the rationale for the deal.

Pala Interactive’s technology includes its player account management system; casino; poker; and social casino and poker platforms as well as a complimentary online platform with full managed services.

Pala currently provides B2B services in eight states across the US as well as Canada, and operates B2C offerings in New Jersey and Canada.

Boyd’s goal is to develop a “strong presence” in its US regional igaming markets where it operates a land-based presence, with the aim of cross-selling between omnichannel strands via its loyalty program as well providing services to land-based operators on a B2B basis.

Boyd Gaming president and CEO Keith Smith welcomed the $170m deal and the potential for Boyd’s future operations going forward.

“The acquisition of Pala Interactive marks the next phase in the ongoing execution of our igaming strategy, providing us with full control over the technology, development and customer experience.

“By integrating online casinos with our existing land-based operations, we will be able to further leverage and monetize our expansive customer database and the amenities of our nationwide portfolio of properties, driving growth in both our land-based and igaming operations.”

Smith continued: “Given our nationwide geographic distribution, significant database and established loyalty program, it makes sense for us to pursue a direct approach with our igaming operations.

“By engaging directly with our guests and having the ability to personalize the customer experience, we are confident in our ability to create a cost-effective and profitable regional igaming business,” he added.

Boyd has moved quickly to quash speculation that the deal will see an end to its strategic partnership with US market leader FanDuel, first inked in August 2018, in which the pair pledged to explore sports betting and online gaming opportunities across the US market.

The two companies have engaged in extensive co-branding and cross-promotional efforts as part of the partnership.

There are five FanDuel sportsbooks located at Boyd Gaming’s land-based casino properties throughout the US and the duo jointly launched the Stardust online casino brand in Pennsylvania and New Jersey in 2021.

Boyd and FanDuel most recently expanded into Louisiana’s sports betting market, following the launch of regulated operations on January 28.

“While the acquisition of Pala Interactive supports our igaming strategy, we remain fully committed to our sports betting partnership with FanDuel, which has allowed us to participate in the nationwide expansion of sports betting,” Smith said.

“We look forward to welcoming the Pala Interactive team to our company and building a highly successful online gaming business in the years ahead,” he added.

Boyd Gaming also owns a 5% stake in the FanDuel business.