Boyd Interactive acquires Resorts Digital as New Jersey presence bolstered
Online segment of Resorts Casino secured by Boyd Interactive for an undisclosed amount in a deal described as “consistent” with operator's strategy
Boyd Interactive has acquired Resorts Digital, the online gambling arm of New Jersey-based Resorts Casino.
The purchase was completed on September 1 for an undisclosed fee, according to Resorts president Mark Giannantonio, who told the Associated Press: “We are confident that this transaction will propel Resorts Digital’s proven success over the past decade to a new level through the scale of Boyd Interactive and its market-leading platform.”
Giannantonio also outlined that despite being under new ownership, Resorts Digital will still operate under the sports betting and internet gambling licenses held by Resorts Casino, with the two companies expected to cross-promote.
Terms of the deal also mean Boyd Interactive is now the owner of both theResortsCasino.com and MoheganSunCasino.com websites, allowing it to operate multiple online casino brands in New Jersey.
Resorts Casino is expected to continue its relationships with other operators, including DraftKings and ESPN Bet.
In the first eight months of 2024, Resorts Digital notably outperformed its brick-and-mortar counterpart in Atlantic City, generating $573m in revenue versus the casino’s $109m.
Resorts Digital’s profitability has increased 5.6% year on year (YOY), with the outfit posting a gross operating profit total of $9.6m in H1 2024, while its land-based operations have seen profits slump 89% compared to 12 months ago.
In Q2 of this year, Resorts Digital recorded $8.6m in revenue, while Boyd Gaming amassed $967.5m in the same metric and time period, climbing 5.5% YOY, inspired largely by an improvement in its online offering, which contributed $129.9m of the overall total.
Boyd’s own statement on the acquisition explained the deal “is consistent with Boyd Gaming’s strategy of building a profitable regional igaming business integrated with our existing nationwide portfolio.”
The Nevada-headquartered company continued by focusing on its increased presence in New Jersey, adding: “New Jersey has long been one of the nation’s leading igaming states, and we look forward to further growing our presence in that state’s online gaming market in partnership with Resorts Casino in Atlantic City.”
Boyd currently also oversees Stardust Casino as a standalone online casino product in the Garden State and Pennsylvania. The company formerly boasted a half-ownership stake in Atlantic City’s Borgatacasino, before selling it to MGM Resorts in 2016 for $900m.
Confirmation of the acquisition of Resorts Digital comes just two months after Boyd Gaming CEO Keith Smith addressed the lingering speculation his outfit was planning to conduct a similar deal for PENN Entertainment.
Speaking during this year’s Q2 earnings call, Smith discussed Boyd’s approach to future M&A as he explained: “We know how to buy properties right, companies right, we know how to extract value out of these companies once they’re part of our portfolio.
“We’ve always been willing – it’s not news – to take a hard look at opportunities that arise. And so, we’ll continue to do that.”