Boyd Gaming, a Las Vegas-based gaming giant, has taken a significant step forward in its iGaming strategy by acquiring Resorts Digital, the online gambling division of Resorts Casino in Atlantic City. This strategic move, finalized on September 1, signals Boyd Gaming’s increasing focus on the booming online gambling industry. Both companies have opted not to disclose the financial terms of the deal, adding an air of intrigue around the transaction.
For several years, Resorts Digital has outshone its land-based counterpart in terms of revenue generation. According to data from the New Jersey Division of Gaming Enforcement, Resorts Digital garnered over $573 million in gambling revenue during the first eight months of this year. This figure dwarfs the $109 million earned by the physical Resorts Casino over the same period. Such performance underscores the profitability and growth potential of the online gambling industry.
The disparity in revenue extends to profitability as well. In the first half of the year, Resorts Digital posted a gross operating profit of $9.6 million, reflecting a 5.6% increase from the same period last year. In stark contrast, the physical Resorts Casino reported a meager gross operating profit of $355,000, marking a sharp decline of nearly 89% compared to the previous year. This financial gap between online and offline gambling venues highlights the lucrative nature of digital operations, which Boyd Gaming is now poised to capitalize on.
The acquisition includes ResortsCasino.com and MoheganSunCasino.com, two established online gambling platforms in New Jersey. Boyd Gaming also gains access to an unused sports betting skin, which could serve as a valuable asset in the highly competitive sports betting market. Resorts Casino, however, will maintain its relationships with other online gambling partners, including prominent names such as DraftKings, Penn Gaming, PokerStars, and ESPNBET. This partnership network will continue to bolster the casino’s overall revenue stream, even after the digital arm’s acquisition.
In a statement, Mark Giannantonio, president of Resorts, expressed optimism about the acquisition, stating that Boyd Interactive’s resources and market-leading platform will elevate Resorts Digital’s success to new heights. He emphasized that the scale of Boyd Gaming will help the digital division tap into its full potential, enhancing both revenue generation and customer experience in New Jersey’s rapidly growing online gambling market.
Boyd Gaming’s move is a part of a broader strategy aimed at expanding its regional iGaming presence. With its acquisition of Resorts Digital, Boyd strengthens its foothold in one of the most lucrative online gambling markets in the United States—New Jersey. Known as a leader in the iGaming space, New Jersey offers Boyd Gaming an excellent platform to scale its online operations while integrating them with its existing nationwide portfolio.
Boyd Gaming, which previously owned a stake in Atlantic City’s Borgata Casino before selling it to MGM Resorts International, has a history of success in the region. The company’s long-standing expertise in the gambling industry will likely aid in further enhancing the online offerings of Resorts Digital. This acquisition reflects Boyd Gaming’s ambition to become a dominant player in the national online gambling scene by leveraging its regional strengths.
Although Resorts Digital is now under Boyd Gaming’s ownership, it will continue to operate under the existing sports betting and internet gambling licenses held by Resorts Casino. This arrangement allows both entities to retain their unique branding while benefiting from cross-promotional opportunities. For example, Resorts Casino will promote the ResortsCasino.com brand within its physical casino premises, encouraging more land-based visitors to explore its online offerings. Conversely, ResortsCasino.com will highlight the Resorts Casino Hotel in Atlantic City to its online customer base, driving traffic to the brick-and-mortar venue.
This mutually beneficial relationship is expected to generate long-term advantages for both parties. Giannantonio believes that the combined marketing efforts will help solidify the reputation of both the physical and digital operations, providing a competitive edge in New Jersey’s crowded gambling landscape.
The acquisition of Resorts Digital by Boyd Gaming marks a pivotal moment in the evolution of online gambling in New Jersey. With Boyd’s extensive resources and proven expertise in the gaming industry, the future looks bright for Resorts Digital. As Boyd Gaming continues to expand its iGaming portfolio, the company is well-positioned to become a dominant force in the national online gambling market. By combining the strengths of both land-based and digital operations, Boyd and Resorts are likely to enjoy sustained growth and profitability in the years to come.
