Boyd Gaming’s CEO claimed the agency solely invested $10m in 2018 for a 5% stake in FanDuel, which changed into $1.76bn. [Image: Shutterstock.com]
Flutter Leisure regained whole management over FanDuel earlier this month, albeit at a hefty price ticket of $1.76bn. Boyd Gaming had acquired 5% of the enterprise in 2018 when it agreed to supply market entry to the operator within the burgeoning US authorized sports activities betting market.
The Las Vegas-based agency reported its second-quarter outcomes on Thursday, beating estimates because of broad-based progress throughout its nationwide properties. Boyd Gaming CEO Keith Smith revealed that the corporate paid solely $10m for the stake and stated that promoting for nearly $2bn is a “fairly honest return” for shareholders.
When requested within the Q&A section of the earnings name what the rapid plan is with the cash from the FanDuel deal, Smith stated that short-term it can go in the direction of lowering debt. In the long term, it intends to make use of the cash to deal with “higher-returning investments,” though he warned that this doesn’t essentially imply one other transaction.
Regardless of promoting the FanDuel stake, Boyd Gaming nonetheless sees alternatives within the on-line playing section with its $170m buy of Pala Interactive in 2022 to assist it serve a “aggressive product” in markets the place it at the moment operates.
