Posted on: September 23, 2024, 03:16h.
Last updated on: September 23, 2024, 03:17h.
Resorts Casino Hotel in Atlantic City is selling its online gaming arm to Las Vegas-based Boyd Gaming. The move could hint that Boyd is set to become the next management firm of the Boardwalk property.
New York real estate tycoons Morris Bailey and Joseph Jerome, who own Resorts Atlantic City under their JEMB Realty Corporation, revealed today that they sold their interactive gaming unit licensed in New Jersey to Boyd Interactive earlier this month.
The transaction was executed on Sept. 1. Terms were not immediately disclosed.
Boyd acquired Resorts Digital Gaming and its online casino brands ResortsCasino.com and MoheganSunCasino.com. Boyd additionally bought the rights to one unused sports betting skin.
Resorts will retain its iGaming and online sports betting partnerships with DraftKings, ESPN Bet, and PokerStars. DraftKings also runs Resorts’ retail book in Atlantic City.
We are confident that this transaction will propel Resorts Digital’s proven success over the past decade to a new level through the scale of Boyd Interactive and its market-leading platform,” Resorts President Mark Giannantonio said in a statement.
Boyd has pledged to cross-market with Resorts, as the online casino websites and apps will continue to advertise the physical resort in Atlantic City. Resorts will continue to include ResortsCasino.com signage in its physical building to direct players online once their stay in Atlantic City ends.
Foreshadowing Management Deal?
Boyd Gaming is one of the nation’s largest regional casino operators. The company operates 29 properties in 19 markets.
In states where online gaming and/or online sports betting is permitted, Boyd’s preferred partner is FanDuel. The third-party firm also handles Boyd’s in-person sports gambling operations outside of Nevada where Boyd Sports runs.
Acquiring ResortsCasino.com could hint that Boyd is mulling a significant push into online gaming and sports betting.
Boyd also owns StardustCasino.com. That brand is live in New Jersey through a licensing agreement with MGM Resorts’ Borgata. Boyd sold off its 50% stake in Borgata to MGM in 2016 for $900 million to give MGM full ownership of Atlantic City’s top casino.
New Jersey has long been one of the nation’s leading iGaming states, and we look forward to further growing our presence in that state’s online gaming market in partnership with Resorts Casino,” a Boyd statement read.
Giannantonio concluded that the deal “will benefit both companies in the long term.”
Boyd will likely terminate the MoheganSunCasino website once Mohegan’s management contract operating the physical Resorts casino concludes at the end of 2024. Resorts selling its digital unit to Boyd could also hint at a precursor to the casino announcing that Boyd will run the resort beginning in January 2025.
Resorts Digital Financials
Resorts Digital reported a gross operating profit of more than $9.6 million in the first half of 2024. The brick-and-mortar Resorts casino and hotel generated a profit of just $355,000 during the same period.
In the six months, Resorts Digital generated iGaming gross revenue of nearly $293.4 million. However, DraftKings accounted for the bulk of the online win at $245.2 million. ResortsCasino.com and MoheganSun.com accounted for $18 million.
Boyd will operate Resorts Digital’s two iGaming brands and possibly a third through the company’s existing partnership with Resorts. As such, Boyd will share some of the online revenue with the physical casino.
