Gambling operator Boyd Gaming has approached competitor Penn Entertainment to discuss a potential acquisition, sources told Reuters. Boyd owns and operates 28 gambling properties across 10 U.S. states, including casinos, racinos, and non-gaming properties. It also has a minority stake (5%) in sports betting and iGaming operator FanDuel.
Penn Entertainment operates more than 40 properties across 20 U.S. states, including its marquee Hollywood Casino brand. The company also inked a 10-year partnership with Disney last year to operate its ESPN BET sportsbook brand, a deal estimated at $1.5 billion.
There are several hurdles to overcome on the way to a possible acquisition, the first being Boyd’s market value of $7.8 billion compared to Penn’s $9 billion. Both companies’ debt structure will require Boyd Gaming to borrow extensively in order to complete a purchase.
Another potential obstacle is Disney’s involvement as a stakeholder in Penn Entertainment because of the ESPN BET partnership, which will require it to agree to the acquisition. And lastly, there are expected challenges from regulators in the states where both companies currently operate.
While there is interest from Boyd Gaming, Penn Entertainment sources say there is no certainty that the company will entertain takeover talks.
“We don’t think any sort of formal strategic review at Penn is likely in the near-term with a clear ESPN BET product roadmap; football season on the horizon; and higher/volatile interest rates still impacting overall M&A for now,” wrote Truist Securities analyst prior to Boyd Gaming’s intentions becoming public.
Zivhas been deep in the iGaming trenches for over 20 years, long before most people could spell "geolocation compliance." With a background in marketing and business development at some of the biggest names in gambling tech, Ziv knows the industry from the inside out. Since joining Covers, he's turned his sharp eye (and sharper keyboard) toward everything happening in the fast-moving world of online gambling. Whether it's new state launches, the latest twists in regulation, or what the big operators and game providers are cooking up next, Ziv breaks it all down with clarity, context, and just the right amount of snark. He covers the business side of betting, from affiliate trends and revenue reports to the tech powering your favorite slots. His motto in writing is “let’s make it make sense without putting you to sleep.”
When he’s not tracking gambling legislation or looking for the next breaking story, Ziv is living and dying with every pitch and play from his beloved Pittsburgh Steelers, Pirates, and Penguins. As a Pitt graduate, it’s a city loyalty forged in heartbreak, but one he wouldn’t trade for anything, except maybe a few more playoff wins.
When away from the keyboard, Ziv loves to hit the road and soak up the energy of casinos. Whether strolling the neon jungle called the Vegas Strip, or wandering into a smoky riverboat casino in the Midwest, Ziv’s in his element. He’s the guy chatting with players, blackjack dealers, and asking pit bosses way too many questions, all in the name of “research,” of course. The casino floor isn’t just his workplace, it’s a weird and wonderful ecosystem of flashing lights, wild characters, and pure sensory overload, and he wouldn’t have it any other way.
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