The FanDuel Group and Boyd Gaming announced that they would join together to operate online sports betting products in the United States.
According to a press release, the two companies will work together to establish mobile betting products in states where sports betting has been legalized and online wagering is permitted.
FanDuel Improves Access to US Markets
Both companies will benefit from extended reach thanks to the partnership. FanDuel will be able to run mobile sportsbooks in states where Boyd Gaming has a license to operate, while Boyd will be able to use FanDuel’s technology and services in their own branded sports betting products. That means that in some states, both FanDuel and Boyd-branded betting apps could exist side by side.
The reach of the agreement is extended by the fact that Boyd has a market-access agreement with MGM Resorts International. That, combined with two pending acquisitions for Boyd, could allow this deal to cover up to 15 states pending the spread of legalized sports betting.
That access appears to be the impetus for the partnership, as both firms hope to gain a foothold in as many emerging markets as possible.
“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,” Boyd Gaming CEO Keith Smith said in a statement.
“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,” added FanDuel Group CEO Matt King.
The two firms will also work to cross-promote their brands where possible. That will likely mean promotion of FanDuel products at Boyd Gaming properties, while Boyd’s brand will appear in FanDuel’s daily fantasy sports products. Specific details of the agreement were not provided.
DFS Rivals Face Off in Sports Betting Battle
When daily fantasy sports took the United States by storm earlier this decade, FanDuel and DraftKings emerged as the giants of the industry. Now, the two rivals are once again preparing to battle each other for market share in the legalized sports betting marketplace.
Each company has taken steps to align with land-based sportsbooks in New Jersey and other states that have quickly passed sports betting regulations following the Supreme Court decision to strike down the Professional and Amateur Sports Protection Act. On Thursday, DraftKings became the first company to offer mobile sports betting in New Jersey, releasing their wagering app on a limited trial basis in the state.
Both companies have been viewed as valuable partners in the American sports betting market thanks to their regulatory experience and their access to large numbers of customers who are accustomed to risking money on sporting events. Earlier this summer, Bookmaking group Paddy Power Betfair finished its acquisition of FanDuel, a move designed to create a potential powerhouse in the US sports gambling market.
DraftKings has yet to enter into a partnership that would give it the kind of access FanDuel now enjoys with Boyd, though it remains an obvious candidate to team up with a major gaming firm. In the meantime, DraftKings has partnered with individual casinos, including Resorts Casino Hotel in New Jersey and the del Lago Resort and Casino in New York.