In a significant move within the online gambling industry, Boyd Interactive has acquired Resorts Digital, the online division of Atlantic City's Resorts casino. The transaction, completed on September 1, 2024, marks a pivotal moment in the evolving landscape of digital gaming.
Financial details of the acquisition remain undisclosed. However, the deal's importance is underscored by Resorts Digital's impressive performance. In the first eight months of 2024, the online platform generated $573 million in revenue, dwarfing the physical Resorts casino's $109 million. This stark contrast highlights the growing dominance of online gambling, a trend that has been accelerating since New Jersey legalized internet gaming in 2013.
The profitability gap between the digital and physical entities is equally notable. Resorts Digital reported a gross operating profit of $9.6 million in the first half of 2024, representing a 5.6% increase from the previous year. In contrast, the brick-and-mortar Resorts casino saw its profit decline by nearly 89% to $355,000 during the same period.
As part of the acquisition, Boyd Interactive gains control of ResortsCasino.com and MoheganSunCasino.com, along with an unused sports betting "skin" - a term referring to the branding of an online betting platform. This expansion aligns with Boyd's strategy to build a robust regional iGaming business integrated with its existing nationwide portfolio.
Mark Giannantonio, president of Resorts, expressed confidence in the deal's potential to elevate Resorts Digital's success to new heights. The acquisition leverages Boyd Interactive's scale and market-leading platform, building upon a decade of proven performance in the online gambling sector.
The deal also involves a strategic cross-promotion arrangement. The physical Resorts casino will promote the ResortsCasino.com brand on its premises, while the online platform will market the Resorts Casino Hotel to its digital customers. This symbiotic relationship aims to benefit both entities in the long term, capitalizing on the synergies between online and offline gambling experiences.
Despite the change in ownership, Resorts Digital will continue to operate under the sports betting and internet gambling licenses held by Resorts Casino. This arrangement ensures regulatory continuity while allowing for operational flexibility.
The acquisition reflects the broader trends in the gambling industry, where online platforms have been gaining significant traction. New Jersey, having legalized online gambling in 2013 and sports betting in 2018 following a landmark Supreme Court decision, has consistently been at the forefront of this digital revolution.
Boyd's move also underscores the company's commitment to expanding its digital footprint. Founded in 1975 by Sam Boyd, the Las Vegas-based company has been adapting to the shifting landscape of the gambling industry. This acquisition marks a return to the New Jersey market for Boyd, which previously held a stake in Atlantic City's Borgata casino before selling its interest to MGM Resorts International in 2016.
The deal comes at a time when the online gambling market in New Jersey continues to thrive. The state has long been a leader in iGaming, with a robust ecosystem that includes major players like DraftKings, PokerStars, and the recently launched ESPNBET. The addition of Boyd Interactive to this competitive landscape is likely to further invigorate the market.
As the gambling industry continues to evolve, with the lines between physical and digital experiences becoming increasingly blurred, deals like this acquisition are likely to become more common. The success of this venture could set a precedent for future consolidations and partnerships in the dynamic world of online gambling.
"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 in Atlantic City."
This strategic move by Boyd Interactive not only strengthens its position in the lucrative New Jersey market but also signals the company's commitment to shaping the future of online gambling in the United States.