Casinos for youBoyd Gaming, a Nevada-Based casino operator, has signed a definitive agreement to acquire Pala Interactive, the iGaming software and services supplier of the Pala Band of Mission Indians. The transaction is projected to cost Boyd $170 million.
Following a definitive agreement signed by the Pala Band of Mission Indians and Boyd Gaming Corporation, Pala Interactive is up for sale to Boyd Gaming for $170 million. The duo reported that the transaction is expected close within Q1 of 2023 and will be made via cash on hand complemented by credit agreements.
Boyd’s subsidiary Boyd Interactive Gaming will be handling the acquisition. The transaction is to be finalized after both parties have fulfilled standard closing conditions and regulatory review and approval. Boyd Gaming CEO Keith Smith voiced his enthusiasm following the buyout announcement saying:Quote
“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. 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.”
What’s in It for Boyd Gaming?
The Pala Interactive gaming company was founded in 2013 and has been supplying both B2B, B2B2C, and B2C real-money and social gaming solutions for several casino markets across the US and Canada. It’s also worth pointing out that the Pala Band iGaming brand recently acquired a Gaming Related Supplier (GRS) Manufacturer License in Ontario, a factor that majorly influenced Boyd’s acquisition.
As the Pala Band of Mission Indians Chairman Robert Smith reported, the Californian Indian tribe has been at the forefront of developing the online gaming platform to the point where it “has become a very successful business.” Pala Interactive CEO Jim Ryan commented on the upcoming acquisition, expressing confidence in the benefits for Boyd. He said,Quote
“Boyd Gaming’s acquisition of the Pala Interactive business positions the enterprise for the next growth phase, which includes the development and execution of an iGaming strategy for Boyd Gaming and a continued commitment of investment and development in Pala’s B2B business.”
On the other hand, Boyd Gaming has been in existence for a little over 4 decades. Its ability to survive over the years has been pegged on well-thought-out initiatives tailored to make the company adapt to changing markets. iGaming is fast becoming a go-to for punters, and being aware of the demand for multiple online gaming solutions, the number of mergers and acquisitions in the online gambling scene has exponentially gone up.
Companies with unapparelled strategic plans have been at the forefront in leading the way for their peers and setting a pace for the future of technologies in the online gaming space. Having been in the land-based casino industry for as long as it has been around, Boyd Gaming has already established itself in 10 states with multiple facilities spread across the US. This puts the company in a great position to penetrate the online gambling market with a ready customer base. Moreover, with the Ontario iGaming market expected to formally go live on April 4th, Pala Interactive’s secured license will certainly put Boyd on a growth trajectory in the Canadian market.
Keith Smith also reported on the reason Boyd has decided to go ahead with the acquisition, saying that:Quote
“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.”
A major concern regarding the deal to buy Pala Interactive was that it might interfere with Boyd Gaming’s relationship with FanDuel, where it has a 5% stake. Smith, however, assured investors in a presentation that despite the new acquisition, Boyd remains fully committed to its partnership with FanDuel, which has facilitated the expansion of Boyd’s sports betting operations nationwide. Through the Boyd-FanDuel partnership, mobile sportsbooks have been launched in recent months for sports bettors.
Preparing for a Booming Interactive Gaming Future
Big companies in iGaming are looking to get ahead of the game and control the market way before anyone else. The last 2 years have seen the online gaming scene light up like never before, generating a considerable amount of income for states and operators, and it seems that there is more coming that way.
Some of the most notable acquisitions in the past few months include DraftKings’ purchase of the Golden Nugget Online Gaming branch for $1.5 billion and Penn National Gaming’s acquisition of Score Media & Gaming for $2 billion. All this points to tactical moves by the bigwigs to consolidate the market and keep it from being too fragmented.
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