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Boyd Gaming Considering Penn Entertainment Acquisition

Ziv Chen

Last Updated: June 25, 2024 6:05 PM EDT • 1 min 1 sec read.

Hollywood Casino in Columbus, Ohio as we explore Boyd Gaming potentially acquiring Penn Entertainment.
Hollywood Casino promotes the upcoming sports betting in Columbus, Ohio on Dec. 8, 2022. Photo by Fred Squillante / The Columbus Dispatch via Imagn.

Las Vegas-based gambling operator Boyd Gaming [NYSE: BYD] has reportedly approached rival Penn Entertainment to discuss a potential acquisition.

Boyd owns and operates 28 land-based gambling properties, including casinos in Las Vegas and other US states, racinos and non-casino properties. It also operates in the real money online casinos scene and owns a 5% stake in FanDuel, an industry leader in sports betting.

Penn Entertainment owns and operates over 40 properties in 20 US states, most notably its famous Hollywood Casino brand. Penn also operates ESPN BET, one of the fastest-growing and best sports betting sites in the industry, through a 10-year partnership with Disney-owned ESPN valued at $1.5 billion.

Could Boyd Gaming acquire Penn Entertainment?

The biggest obstacle to the acquisition is that Penn Entertainment and Boyd Gaming are valued at $9 billion and $7.8 billion, respectively. Considering both companies' debt structures, Boyd will need considerable financial leverage to complete the deal.

In addition, the Disney Company would have to approve the acquisition as a stakeholder in the ESPN BET partnership. Lastly, the proposed purchase may also yield regulatory challenges in the legal sports betting states where both companies currently operate. 

Sources close to Penn Entertainment have said there is no guarantee the company will entertain conversations with Boyd Gaming.

“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," a Truist Securities analyst said about the news.

The move comes amid Penn Entertainment shareholders’ concerns over the company’s growth strategy and discontent earlier this month from the board's re-election and compensation packages. 

Written By:
Ziv Chen
Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.