Boyd Gaming partners with FanDuel

(PRESS RELEASE) -- Boyd Gaming Corporation and FanDuel Group – a subsidiary of Paddy Power Betfair plc, a leading international sports betting and gaming operator — today announced that they have entered into a strategic partnership to pursue sports betting and online gaming opportunities across the United States.

The partnership brings together two of the largest and most geographically diversified companies in the gaming entertainment industry. Boyd Gaming is one of the largest and most experienced companies in the gaming industry, and will operate 29 casinos across 10 states upon the completion of two pending acquisitions. With eight million customers and a presence across 45 states, FanDuel Group is the largest online sports destination in the United States, with a range of products and experiences for all sports fans.

Under terms of the agreement, subject to state law and regulatory approvals, Boyd Gaming will establish a presence in the online gaming and sports wagering industry by leveraging FanDuel Group's technology and related services to operate Boyd Gaming-branded mobile and online sports betting and gaming services. In turn, FanDuel Group will establish and operate mobile and online sports betting and gaming services under the FanDuel brand in the states where Boyd Gaming is licensed.

"Through this partnership, Boyd Gaming and FanDuel Group will be in excellent position to successfully capitalize as sports betting and online gaming expand across the country," said Keith Smith, President and Chief Executive Officer of Boyd Gaming. "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."

"With more than 40 years of experience, Boyd Gaming is a leader in the gaming and entertainment space, and a natural partner as we continue to build a leading position in the sports betting market," said Matt King, Chief Executive Officer of FanDuel Group. "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."

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, representing more than 36% of the U.S. population.

The two companies will also engage in extensive co-branding and cross-promotional efforts. FanDuel Group will market Boyd Gaming properties through its existing daily fantasy sports service and future interactive sports betting and gaming services, while Boyd Gaming will promote FanDuel's products to its customer base. FanDuel Group will also provide Boyd Gaming customers access to its existing product line.

Moelis & Company LLC acted as exclusive financial advisor on the strategic partnership.