The US casino partner of Flutter Entertainment, the owner of Paddy Power Betfair, has revealed hopes to finalise a deal to borrow a total of $600 million by the end of the week that are set to be used as the company is preparing to resume some of its operations.
FanDuel, a US subsidiary of recently enlarged Flutter, offers sports betting services in collaboration with Boyd Gaming at the latter’s casino venues in a number of US states. Now, it became clear that Boyd Gaming, an operator listed in the New York Stock Exchange, plans to borrow $600 million in a bond issue that is expected to be finalised on May 21st. The company had initially announced intentions to borrow $500 million, but the figure was boosted to $600 million at the end of the previous week.
As revealed by Boyd Gaming, which currently operates several casinos across the US, the additional cash that it is set to get through the bond issue is set to be used for what it described as general corporate purposes. Recently, the company laid off some of its staff in the US following the restrictions aimed at tackling the further spreading of the coronavirus pandemic.
According to reports that emerged over the weekend, the group could resume operations of its businesses in the states of Louisiana and Mississippi at the end of May.
Flutter Only Recently Completed Massive Merger with The Stars Group
FanDuel is currently licensed to provide online sports betting in some US states, but the company also needs a physical presence there. Back in 2018, it chose Boyd Gaming as its partner following the US Supreme Court ruled in favour of the legalisation of betting on sports.
As Casino Guardian already reported, Flutter Entertainment recently finalised its merger with Canada-based gambling company The Stars Group. The deal ended up creating the largest online gambling operator on a global scale, with presence in Europe, Asia, Australia and the Americas.
The merger of the two companies happened on May 5th, following the two groups’ shareholders support of the £10-billion deal.
As mentioned above, the completion of the deal created an extremely powerful gambling entity, with the combined company owning a massive range of brands operating across the gambling industry. The merger was finalised after all the competent regulatory authorities gave their approval and started trading on both the London Stock Exchange and the Euronext Dublin market. The combined group owns five reporting segments, one of which is exactly the US-based unit that includes FanDuel. The group also has a significant presence in the UK through its Paddy Power Betfair and Sky Betting and Gaming brands, and will also continue offering its services through the SportsBet and BetEasy brands in Australia.