FanDuel Group continued its rapid expansion into US sports betting Thursday by partnering with Boyd Gaming for mobile and online wagering.
FanDuel Group — the new US arm of Paddy Power Betfair –– will power mobile and online sports betting at Boyd properties throughout the country. The deal takes FanDuel’s sports betting operation from New Jersey to national less than two months after its creation.
How the deal will work
According to information from the companies, both the Boyd and FanDuel Sportsbook brands will be in operation. Boyd spokesman David Strow said the companies will determine which brand will be used in which state based on laws and regulations as they develop.
The agreement includes properties covered in Boyd’s deal earlier this week with MGM Resorts International:
This agreement will cover all states where Boyd Gaming holds gaming licenses currently and in the future, excluding Nevada. It also covers states included under Boyd Gaming’s market-access agreement with MGM Resorts International. Upon completion of Boyd Gaming’s pending acquisitions of the four Pinnacle properties and Valley Forge, Boyd Gaming will have access in 15 states nationwide.
MGM and Boyd have casinos in 15 states. In theory, Boyd could operate a FanDuel Sportsbook-branded mobile operation under MGM’s license in a state such as New Jersey. Strow said both brands could operate in some states.
The agreement gives FanDuel Group enormous reach via Boyd and MGM properties:
|State||MGM and/or Boyd?||Legal status of sports betting||Legal status of online casino and poker|
|Nevada||Both||Legal with mobile||Online poker only|
|Maryland||MGM||Expect bill in 2019||None|
|Massachusetts||MGM opens Aug. 24||Expect bill in 2019||None|
|Michigan||MGM||Bill introduced this year||Bill introduced in 2018|
|Mississippi||Both||Legal and about to launch land-based wagering||None|
|New York||MGM (pending)||Land-based commercial casino betting is legal, not launched||Online poker bill introduced in 2018|
|Illinois||Boyd buying property from MGM||Bill introduced in 2018||None|
|Indiana||Boyd||Bill introduced in 2018||None|
|Iowa||Boyd||Bill introduced in 2018||None|
|Kansas||Boyd||Bill introduced in 2018||None|
|Louisiana||Boyd||Bill introduced in 2018||Bill introduced in 2018|
|Pennsylvania||Boyd (pending)||Legal pending finalized regulations||Will launch early 2019|
|Ohio||Boyd (pending)||Bill introduced in 2018||None|
|New Jersey||MGM||Legal and launched with mobile pending||Both online poker and online casino legal|
Boyd gets an ownership position as well
Financial terms of the deal were not released. Paddy Power Betfair did announce that Boyd will receive a 4 percent equity stake in FanDuel Group, with an option to purchase another 1 percent in the future.
Paddy Power Betfair acquired FanDuel earlier this year to give the European operator a recognizable presence for its push into US sports betting. When the deal to acquire FanDuel closed in early July, Paddy Power Betfair had access to three states for sports betting. Less than a month later, the company has a nationwide partnership — growth reminiscent of FanDuel’s roots in daily fantasy sports.
Major partnerships popping up quickly
Boyd’s deal with FanDuel Group is the second such earth-shaking partnership in less than a week. Amid a torrent of news made by the company, MGM announced its own sports betting partnership with European giant GVC.
The deal will function similarly to that of Boyd and FanDuel Group, in that GVC will provide the technology for the operation. A significant difference is that MGM plans to operate primarily under its own playMGM brand.
What they’re saying about the agreement
Boyd President and CEO Keith Smith said in a statement that his company hopes to gain from FanDuel’s established customer base.
“By joining forces with FanDuel’s nationally-known brand, as well as their considerable technical expertise and resources, we will be positioned to build market-leading sports-betting and online gaming operations in each state as they move forward with these new forms of entertainment. We will also see immediate benefits from our cross-marketing agreement with FanDuel, introducing millions of FanDuel customers to Boyd Gaming’s properties nationwide.”
FanDuel’s rapid expansion now takes on both a major partner and bigger expectations.
“There is incredible momentum in the sports betting space and we look forward to partnering with Boyd Gaming to bring the FanDuel Sportsbook to more customers across the United States,” FanDuel CEO Matt King said in a statement.