Pala Band of Mission Indians Enters into Agreement to Sell Pala Interactive LLC to Boyd Gaming for $170 Million

Rhea-AI Summary

Pala Interactive LLC has reached a definitive agreement to sell its business to Boyd Gaming Corporation (NYSE: BYD) for $170 million. Founded in 2013, Pala Interactive specializes in online gaming technology and currently operates in eight U.S. states and Canada. This acquisition is expected to enhance Boyd Gaming's iGaming strategy, following Pala Interactive's recent achievement of an Ontario Gaming Related Supplier License. The deal is anticipated to close by the first quarter of 2023, pending regulatory approvals.

Positive

• Acquisition strengthens Boyd Gaming's position in the iGaming market.
• Pala Interactive's Ontario Gaming Related Supplier License opens growth opportunities in Canada.

Negative

• None.

PALA, Calif., March 28, 2022 /PRNewswire/ -- Pala Interactive LLC, a North American iGaming software and services supplier that is majority owned by the Pala Band of Mission Indians, entered into a definitive agreement with Boyd Gaming Corporation (NYSE:BYD) to sell the business for total cash consideration of $170 million.

Pala Interactive, founded by the Pala Band of Mission Indians in 2013, has built an innovative online gaming technology company that provides real money and social gaming solutions on both a business-to-business (B2B) and business-to-consumer (B2C) basis in regulated markets across the United States and Canada. The Pala Interactive technology includes a player management system, casino, poker, integrated sports, social casino and poker platforms, complemented by a full suite of managed services. Pala Interactive currently provides B2B services in eight U.S. states and in Canada and operates B2C and B2B2C offerings in New Jersey and Canada, respectively.

"Our tribe was at the forefront in creating an online gaming platform," said Robert Smith, Chairman of the Pala Band of Mission Indians. "We brought together the best minds in the business to build and ultimately transact, what has become a very successful business." 

Jim Ryan, CEO of Pala Interactive, said, "This is the result of a considerable capital investment and  lot of hard work by the Pala Tribe and Pala Interactive employees to build a modern-age online gaming platform and business tailored to the North American regulated gaming market. Boyd Gaming's acquisition of the Pala Interactive business, positions the enterprise for the next growth phase, which includes the development and execution of an iGaming strategy for Boyd Gaming and a continued commitment of investment and development in Pala's B2B business."

 The acquisition comes after Pala Interactive recently received its Ontario Gaming Related Supplier (GRS) Manufacturer License. Securing the GRS license marks another milestone for the Company in the North American regulated iGaming market, and positions the business for further growth in the Canadian marketplace.

The closing of the transaction is subject to usual and customary closing conditions, including regulatory review and approval, and is anticipated to close by the first quarter of 2023.

Brownstein Hyatt Farber Schreck served as legal advisor to Pala Interactive for the transaction.

About Pala Interactive
Founded in 2013 by the Pala Band of Mission Indians, Pala Interactive LLC anticipated the growth of online gaming opportunities in the United States and now provides its proprietary Online Gaming Platform for real money and social gaming.

The Pala Interactive Online Gaming Platform consists of proprietary technology, including a player account management system, online casino and poker products complemented by our integrated sports platform, relevant marketing tool integrations and optional customer and marketing support services. Pala is licensed and has customers in eight U.S. states and the province of Ontario.

About Boyd Gaming
Founded in 1975, Boyd Gaming Corporation (NYSE: BYD) is a leading geographically diversified operator of 28 gaming entertainment properties in 10 states. The Company is also a strategic partner and 5% equity owner of FanDuel Group, the nation's leading sports-betting and iGaming operator. With one of the most experienced leadership teams in the casino industry, Boyd Gaming prides itself on offering its guests an outstanding entertainment experience, delivered with unwavering attention to customer service. Through a long-standing company philosophy called Caring the Boyd Way, Boyd Gaming is committed to advancing Environmental, Social and Corporate Governance (ESG) initiatives that positively impact the Company's stakeholders and communities. Our commitment to being an employer of choice has been recognized by Forbes magazine, which named Boyd Gaming the highest-ranked gaming company in America's Best Employers for Diversity in 2021, and Nevada's Best Employers in 2020 and 2021. For additional Company information and press releases, visit https://investors.boydgaming.com.

CONTACT: Doug Elmets
(916) 206-8662

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SOURCE Pala Band of Mission Indians

FAQ

What is the cash consideration for Boyd Gaming's acquisition of Pala Interactive?

Boyd Gaming is acquiring Pala Interactive for a total cash consideration of $170 million.

When is the expected closing date for the acquisition of Pala Interactive by Boyd Gaming?

The acquisition is expected to close by the first quarter of 2023, subject to regulatory approvals.

What are the operations of Pala Interactive prior to its sale to Boyd Gaming?

Pala Interactive provides online gaming technology and services in eight U.S. states and Canada.

How does the acquisition of Pala Interactive benefit Boyd Gaming?

The acquisition enhances Boyd Gaming's iGaming strategy and positions it for growth in the online gaming market.