Also, given the size of the transaction and marginal (adjusted earnings) contributions or capital requirement near-term, we expect a generally neutral reaction to the share.”īoyd indicated its current digital operations, which include mobile sports-betting in six states, igaming in Pennsylvania and New Jersey, and social gaming, generated $24 million in adjusted earnings in fiscal year 2021 and should exceed $30 million in 2022, Katz said. “Given that management has indicated its plan to own its igaming brand previously, this shouldn’t come as a large surprise. “Boyd will migrate the Stardust business, which is currently operated by FanDuel, in-house and integrate it with the B Connected loyalty system,” said equities analyst David Katz with Jefferies Equities Research. In April 2021, FanDuel launched its online casinos in Pennsylvania and New Jersey, under Boyd’s brand, Stardust Casino. Boyd Gaming said the acquisition, expected to close by the first quarter of 2023, doesn’t affect its sports-betting partnership with FanDuel, in which it has a 5% stake.
