Gaming and Hospitality Company Boyd Gaming acquires California-based online gaming company Pala Interactive, the Nevada operator announced on Monday. The move is expected to advance Boyd’s iGaming strategy and drive growth within the segment.
The definitive agreement was entered into through Boyd Interactive Gaming, a wholly owned subsidiary of Boyd Gaming Corporation. The deal sees the company acquire Pala Interactive LLC – founded in 2013 by the Pala Band of Mission Indians – and its subsidiaries for a total cash consideration of $170 million..
Boyd describes Pala Interactive as “an innovative online gaming technology company” providing exclusive real-money and social gaming solutions on both a business-to-business (B2B) and business-to-consumer (B2C) basis in regulated markets in the United States and Canada.
Pala Interactive’s technology includes its player account management system; casino; poker; and social casino and poker platforms. The company complements its iGaming platform with a full suite of managed services, and currently provides B2B services in eight US states as well as Canada, and operates B2C offerings in New Jersey and Canada. The acquisition comes after Pala Interactive recently received its Ontario Gaming Related Supplier (GRS) manufacturer license, a key approval ahead of the Ontario iGaming market launch on April 4th.
“The acquisition of Pala Interactive marks the next step in the continued execution of our iGaming strategygiving us full control over technology, development and the customer experience,” said Keith Smith, President and CEO of Boyd Gaming.
Keith Smith, Boyd Gaming CEO
The company expects that by integrating online casinos into its existing land-based operations, it can to further leverage and monetize its extensive customer database and the amenities of its national portfolio of propertiesdriving the growth of its land-based and iGaming operations.
“Given our Nationwide geographic distribution, large database and established loyalty program makes sense for us to pursue a hands-on approach with our iGaming operations,” Smith continued. “By engaging directly with our customers and having the ability to personalize the customer experience, we are confident in our ability to create a profitable and profitable regional iGaming business.”
The executive further explained that while the acquisition of Pala supports Boyd’s iGaming strategy, the company still remains “fully committed” to its partnership with FanDuelwhich allowed the Nevada company to participate “in the national expansion of sports betting”.
“We look forward to welcoming the Pala Interactive team to our company and building a very successful online gaming business in the years to come,” concluded the CEO of Boyd Gaming. The transaction is expected to close by the first quarter of 2023, subject to customary closing conditions. It will be funded by a combination of cash on hand and Boyd’s existing credit agreement.
“Our tribe was at the forefront of creating an online gaming platform,” noted Robert Smith, President of the Pala Band of Mission Indians. “We brought together the best minds in the business to build and ultimately negotiate what became a very successful business.”
Jim Ryan, CEO of Pala Interactivesaid, “This is the result of a huge capital investment and a lot of hard work by the employees of Pala Tribe and Pala Interactive to create a modern online gaming platform and a business fit for the North American regulated gaming market Boyd Gaming’s acquisition of the Pala Interactive business, positions the company for the next phase of growth, which includes developing and executing an iGaming strategy for Boyd Gaming and a continued commitment to investment and development in Pala’s B2B business.”