Published on: September 23, 2024, 03:16h.
Last updated on: September 23, 2024, 03:17h.
Resorts Casino Hotel in Atlantic City is transferring its online gaming division to Boyd Gaming based in Las Vegas. This move could indicate Boyd’s potential role as the next management company for the Boardwalk property.
Real estate moguls Morris Bailey and Joseph Jerome, owners of Resorts Atlantic City through JEMB Realty Corporation, announced the sale of their New Jersey-licensed interactive gaming unit to Boyd Interactive earlier this month.
The deal was finalized on Sept. 1 without immediate disclosure of the terms.
Boyd has acquired Resorts Digital Gaming along with its online casino brands ResortsCasino.com and MoheganSunCasino.com. They have also secured the rights to an unused sports betting license.
Resorts will maintain partnerships with DraftKings, ESPN Bet, and PokerStars for iGaming and online sports betting. DraftKings also operates Resorts’ retail book in Atlantic City.
Resorts President Mark Giannantonio expressed confidence that this move will elevate Resorts Digital’s success with Boyd Interactive’s superior platform.
Boyd has committed to cross-promoting with Resorts, ensuring that the online casino platforms continue to promote the physical resort in Atlantic City. Resorts will display signage for ResortsCasino.com in the building to direct players online after their stay in the city.
Foreshadowing Management Deal?
Boyd Gaming is a major regional casino operator with 29 properties in 19 markets across the country.
In states allowing online gaming and sports betting, Boyd’s partner of choice is FanDuel. FanDuel also manages Boyd’s sports gambling operations outside of Nevada, where Boyd Sports is in charge.
The acquisition of ResortsCasino.com suggests that Boyd is considering a significant expansion into online gaming and sports betting.
Boyd also owns StardustCasino.com, operating in New Jersey through a licensing deal with MGM Resorts’ Borgata. Boyd sold its 50% stake in Borgata to MGM in 2016 for $900 million, giving MGM full ownership of Atlantic City’s premier casino.
Boyd stated, “New Jersey has been a leading state for iGaming, and we are excited to expand our presence in the online gaming market through our partnership with Resorts Casino.”
Giannantonio believes that this agreement will be mutually beneficial in the long run.
Boyd is likely to discontinue the MoheganSunCasino website after the Mohegan management contract at Resorts concludes at the end of 2024. The sale of Resorts’ digital unit to Boyd could indicate that Boyd will take over the resort’s management starting in January 2025.
Resorts Digital Financials
Resorts Digital reported a gross operating profit of over $9.6 million in the first half of 2024, significantly higher than the profit generated by the physical Resorts casino and hotel, which was just $355,000 during the same period.
Resorts Digital recorded iGaming gross revenue of nearly $293.4 million in the first six months. The majority of the online win came from DraftKings at $245.2 million, while ResortsCasino.com and MoheganSun.com brought in $18 million.
Boyd will manage Resorts Digital’s two iGaming brands and potentially a third through the existing partnership with Resorts, ensuring that some of the online revenue is shared with the physical casino.