Boyd Gaming completes $170 million purchase of Pala Interactive

Published on: November 1, 2022, 05:02h.

Last update on: November 1, 2022, 05:02h.

Boyd Gaming (NYSE:BYD) today announced that it has completed its previously announced $170 million all-cash acquisition of Pala Interactive.

Interactive Palace
Boyd Gaming headquarters in Las Vegas. The company has completed its purchase of Pala Interactive. (Picture: LinkedIn)

The regional casino operator said in March that its Boyd Gaming Interactive unit was buying Pala Interactive from the Pala Band of Mission Indians of California. The deal closed slightly ahead of schedule as it was originally expected to close in the first quarter of 2023. Boyd funded the purchase with cash and capital from an existing credit facility.

Online casino gaming is an attractive growth opportunity for our company, and the acquisition of Pala Interactive provides us with the technology, products and expertise needed to build a profitable regional online casino business,” said the Boyd CEO Keith Smith in a statement.

Pala Interactive includes business-to-business (B2B) and business-to-consumer (B2C) platforms. News of the purchase comes shortly after Pala Interactive secured its license as an Ontario Gaming Related Supplier (GRS). The company provides B2B services in eight states and Canada, while its consumer offerings are available in Canada and New Jersey.

Buying Pala Could Boost Boyd iGaming’s Ambitions

Boyd, which is one of the leading local casino operators in the Las Vegas Valley, has a thriving online casino footprint, which the purchase of Pala Interactive is expected to strengthen.

With the purchase of Pala Interactive, the buyer benefits from online casino technology, an experienced management team and managed services for customer support, fraud issues and payments. Additionally, Boyd acquires technology relevant to the operation of real and social money casino operations and the management of player accounts, as well as an in-house game studio.

Boyd operates 28 casinos in 10 states, including 11 in the Las Vegas area. Its live money online casino offerings are available in New Jersey and Pennsylvania. Boyd currently operates its iconic Stardust brand for its social casino, through which members of its B Connected loyalty program can earn rewards points.

“We look forward to working with the team at Pala Interactive in executing our online casino games strategy, which will complement our existing land-based operations and further expand our nationwide customer base,” Smith added in the communicated.

Pala Interactive already profitable

Notably, Boyd does not support a money-losing entity with Pala Interactive. Rather, the opposite is true, as the internet gaming unit generated $5 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) last year – a figure that is expected to rise in 2022.

In announcing the deal in March, Boyd noted that the acquisition of Pala Interactive had no impact on his 5% stake in FanDuel, which serves as the casino operator’s primary exposure to sports betting outside of its native country.

Pala Interactive has an impressive list of clients including Gamesys, Unibet and the World Poker Tour (WPT) among others.

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