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Boyd Gaming Considering Penn Entertainment Acquisition

Collins Garrett

Updated on June 25, 2024 at 6:05 PM EDT, this article has a reading time of 1 minute and 1 second. For more information, check out the Twitter and Google News links provided.

Hollywood Casino in Columbus, Ohio as we explore Boyd Gaming potentially acquiring Penn Entertainment.
Hollywood Casino promotes the upcoming sports betting in Columbus, Ohio on Dec. 8, 2022. Photo by Fred Squillante / The Columbus Dispatch via Imagn.

Boyd Gaming, a gambling operator based in Las Vegas, has reportedly initiated talks with rival Penn Entertainment regarding a possible acquisition.

Boyd is the owner and operator of 28 land-based gambling establishments, such as casinos in Las Vegas and various states, as well as racinos and non-casino properties. Additionally, Boyd is involved in the real money online casino industry and holds a 5% ownership in FanDuel, a major player in sports betting.

Penn Entertainment, the owner and operator of more than 40 properties across 20 states in the United States, is best known for its renowned Hollywood Casino brand. Additionally, Penn operates ESPN BET, a rapidly growing and top-rated sports betting site, in partnership with ESPN, a subsidiary of Disney. This 10-year partnership is valued at $1.5 billion.

Could Boyd Gaming acquire Penn Entertainment?

The main challenge in acquiring Penn Entertainment and Boyd Gaming is their respective valuations of $9 billion and $7.8 billion. Given their existing debt structures, Boyd will require significant financial leverage to successfully finalize the deal.

Furthermore, the acquisition would require approval from the Disney Company, a stakeholder in the ESPN BET partnership. Additionally, the proposed purchase may face regulatory obstacles in the legal sports betting states where both companies are active.

Sources in close proximity to Penn Entertainment have indicated that the company is not committed to engaging in discussions with Boyd Gaming.

A Truist Securities analyst stated that they do not anticipate Penn conducting a formal strategic review in the near future, citing a clear ESPN Bet product roadmap, the upcoming football season, and the current impact of higher/volatile interest rates on overall M&A activity.

The decision was made in response to concerns raised by Penn Entertainment shareholders about the company’s growth strategy, as well as dissatisfaction expressed by the board’s re-election and compensation packages earlier this month.

Written By:
Collins Garrett
Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We’re going to pursue perfection, knowing full well we won’t catch it, but we’re going to relentlessly chase it,” Mike Tomlin, Pittsburgh Steelers Head Coach.