The owner of the Irish bookmaker and casino provider Paddy Power, Flutter Entertainment, made the announcement that its American partner is planning to borrow $600 million in order to advance its corporate plans in the United States on the same day that they will reopen 9 of their local casinos on June 4th.
Boyd Gaming, which is the casino division of Flutter Entertainment’s US business, and Fanduel, which is responsible for the operations of sports betting in the country, would both be eligible for the loan agreement to be made available to them.
Initially, it was intended for Boyd Gaming to submit a bond issuance application in the amount of $500 million. However, the group increased the figure this week as part of its efforts to reopen businesses in the United States after they had been closed for several months. The announcement comes after shares of Boyd Gaming, a casino operator based in Las Vegas, dropped by seven percent two weeks ago following the sale of five hundred million dollars in senior notes.
The decision to provide Boyd Gaming with an additional $600 million in funding is going to have a constructive effect on the company’s balance sheet. The outbreak of the coronavirus has had a negative impact on the gaming business, and casino brands have resorted to a variety of strategies, including this loan transaction, in order to shore up their financial reserves.
Flutter Entertainment’s plans to maintain its standing as the most successful online gaming firm in the world depend heavily on the acquisition of Boyd Gaming. Paddy Power and Betfair merged into one company in 2016, which resulted in the formation of this brand, which has since gone on to purchase The Stars Group. According to listings of reputable casinos in the United Kingdom, the Paddy Power casino website has established itself as a popular operator throughout Europe. And the same thing holds true for the sportsbooks assets owned by Flutter.
An article written by www.free-slots-games.co.uk new slots mention that Flutter Entertainment will be hoping that its American projects can benefit from the continuing deregulatory efforts being undertaken by various states in the United States regarding online gaming.
Currently, Boyd Gaming has 29 top mobile casinos spread out over 10 different states in the United States. These gaming venues would prove to be an invaluable foothold for Fanduel, the operator of fantasy sports games that Paddy Power bought in May of 2018.
Many of the proposals that have been made to make sports betting legal in the United States are contingent on the fact that operators will have a physical location from which they will operate a digital betting platform. In 2018, Fanduel and Boyd Gaming formed a partnership with the expectation that it would enable both businesses to capitalize on a ruling made by a federal court to permit residents of the United States to place online wagers on sporting events.
There were 20 states in the United States that allowed legally sanctioned sports betting as of May 2020. On the other hand, it is widely anticipated that a significant number of additional states, including Washington, Tennessee, North Carolina, and Virginia, will join the fray this year.
The size of the market for online gambling in the United States was estimated to be $53.7 billion in 2019. It is estimated that the gambling industry in the United States might be worth $102.977 billion by the year 2025 if the current trends towards deregulatory action across states continue. Given all of this, the choice that Boyd Gaming made to submit an application for loan amounts totaling $600 million is an extremely significant step.
The problem caused by the coronavirus has had a significant impact on the gambling sector, just as it has on many other industries. In March, Boyd Gaming’s credit score was downgraded by Moody’s Investors Service to B2 from B1, the previous level. This was because of the unfavorable attitude brought about by the fact that the company was forced to close its casino premises in accordance with recommendations made by both the federal government and the state governments.
It was necessary for Boyd Gaming to place its employees across the United States on unpaid leave this spring; nevertheless, there is optimism that the company will be able to reopen its locations in some states, such as Louisiana and Mississippi, before the end of the month.
The reopening of workplaces presents a significant number of difficulties across all sectors. It is thought that Boyd Gaming and Flutter Entertainment would be able to weather the storm because additional funds to the tune of $600 million have been set aside for what are known as “general business reasons.”