Boyd Gaming Expands New Jersey Presence with Acquisition of Resorts Digital

Boyd Interactive has taken a major step toward solidifying its online gambling footprint by acquiring Resorts Digital, the online gaming arm of New Jersey’s Resorts Casino. This acquisition, which was finalized on September 1, 2024, marks a significant expansion for the Las Vegas-based Boyd Gaming, known for operating properties across the United States. The exact purchase price remains undisclosed, but the move aligns with Boyd’s strategy of growing its regional iGaming business.

The Details of the Acquisition

With this acquisition, Boyd Interactive gains control over two significant online casino platforms, ResortsCasino.com and MoheganSunCasino.com, along with an unused sports betting skin. This latest move positions Boyd to operate multiple iGaming brandsin New Jersey, one of the most competitive online gaming markets in the U.S.

Mark Giannantonio, president of Resorts, confirmed the finalization of the deal in an announcement on Monday. “We are confident that this transaction will propel Resorts Digital’s proven success over the past decade to a new level through the scale of Boyd Interactive and its market-leading platform,” Giannantonio stated. The two companies also plan to cross-promote their services, benefiting both the physical and digital sides of Resorts Casino.

Despite the change in ownership, Resorts Digital will continue to operate under the existing sports betting and internet gambling licenses held by Resorts Casino. The long-standing relationships with online gambling partners such as DraftKings, PokerStars, and ESPN Bet will also remain intact, ensuring that players still have access to their favorite platforms through Resorts.

Digital Success Sures Brick-and-Mortar

Resorts Digital has consistently outperformed its physical counterpart, particularly in 2024. Over the first eight months of the year, Resorts Digital raked in over $573 million, a stark contrast to the $109 million reported by the brick-and-mortar casino in Atlantic City. The gross operating profit of Resorts Digital also grew by 5.6% year-over-year, further highlighting the increasing dominance of online gambling. Meanwhile, the physical casino saw a significant decline in profitability, with gross operating profit falling by almost 89% compared to the previous year.

This disparity is not unique to Resorts. Across the industry, digital gaming is becoming a more lucrative avenue, especially as consumers increasingly prefer the convenience of online platforms. Boyd’s acquisition of Resorts Digital is a calculated move to capitalize on this trend and continue expanding in a rapidly growing market.

Boyd’s iGaming Strategy

Boyd Gaming’s acquisition of Resorts Digital aligns with its broader strategy toAtlantic City’s Borgata Casino to MGM Resorts International, as well as its ongoing operation of the Stardust Casino online platform in both New Jersey and Pennsylvania.

Boyd’s second-quarter results in 2024 also indicate the company is in a strong financial position. The company reported $967.5 million in revenue for Q2 2024, an increase from $917 million in the same quarter the previous year. Boyd also posted a net income of $139.8 million for the quarter, down from $192.5 million in Q2 2023, but still indicative of strong overall performance, especially when considering the industry’s competitive landscape.

Future Prospects for Boyd and Resorts

The acquisition of Resorts Digital not only strengthens Boyd’s iGaming presence but also signals the company’s commitment to long-term growth in the online space. While rumors in July hinted at Boyd potentially acquiring PENN in a multi-billion-dollar deal, this acquisition remains focused on the iGaming sector in New Jersey.

Resorts Digital’s established success, combined with Boyd’s experience and resources, is expected to drive even more growth in the digital market. With a competitive portfolio that includes the growing Stardust Casino brand and partnerships with industry leaders like DraftKings and FanDuel, Boyd is well-positioned to capture more market share in the evolving online gambling industry.

This acquisition also hints at the increasing importance of collaboration between digital and physical casinos. As Giannantonio pointed out, the partnership between Resorts and Boyd will allow for mutual promotion, where the physical casino will push players toward the digital platform, and ResortsCasino.com will, in turn, promote its land-based venue to online customers. This mutually beneficial marketing strategy is expected to yield positive results for both brands.

Source:

Boyd Gaming buys Resorts Digital online gambling operation, Associated Press, September 23, 2024.