Boyd Gaming agrees $170m acquisition of Pala Interactive to expand US iGaming capabilties
Boyd Interactive Gaming, the online subsidiary of Boyd Gaming Corporation, has agreed to purchase 100% of Pala Interactive in an all-cash deal worth $170m.
Pala Interactive is an online B2B and B2C gaming technology company founded in 2013 and majority owned by the Pala Band of Mission Indians.
The firm offers both real-money and social casino and poker platforms, in addition to its PAM system and a full suite of managed services.
Pala currently provides B2B services in eight US states as well as Canada and operates B2C offerings in both New Jersey and Canada.
Boyd Interactive currently offers mobile sports betting in six states, in addition to real-money online casino in Pennsylvania and New Jersey. Its Stardust Social Casino brand is available nationwide.
In 2021, the subsidiary generated $24m in EBITDAR, with more than $30m projected for 2022. Pala Interactive, meanwhile, declared $5m in EBITDA in 2021, with further growth expected this year.
Boyd Gaming CEO Keith Smith: “Given our nationwide geographic distribution, significant database and established loyalty programme, it makes sense for us to pursue a direct approach with iGaming.”
“The acquisition of Pala Interactive marks the next phase in the ongoing execution of our iGaming strategy, providing us full control over the technology, development and customer experience,” said Keith Smith, president and CEO of Boyd Gaming.
“By integrating online casinos with our existing land-based operations, we will be able to further leverage and monetise our expansive customer database and the amenities of our nationwide portfolio of properties, driving growth in both our land-based and iGaming operations.
“Given our nationwide geographic distribution, significant database and established loyalty programme, 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 personalise the customer experience, we are confident in our ability to create a cost-effective and profitable regional iGaming business,” he added.
Smith was keen to point out that while the acquisition of Pala Interactive supports Boyd’s iGaming strategy, the business remains fully committed to its sports betting partnership with Flutter Entertainment-owned FanDuel across the US.
The acquisition is expected to close by Q1 2023, subject to customary closing conditions and the receipt of all required regulatory approvals. The transaction will be financed with a combination of cash on hand and Boyd’s existing credit agreement.
Boyd Gaming Corporation’s share price stands at $68.68 per share on Nasdaq at the time of writing.