Penn National Gaming stock saw a significant increase in value due to rumors circulating about Flutter Entertainment potentially teaming up with Boyd Gaming for a takeover bid. This news comes amidst a mixed day for gaming stocks, with Penn Entertainment rallying 4.70% following reports of the possible collaboration.
While Boyd Gaming’s interest in acquiring Penn has been circulating for several weeks, the addition of Flutter Entertainment to the mix is a new development. The speculation suggests that Flutter, the parent company of FanDuel, could play a role in acquiring Penn’s digital assets, such as ESPN Bet. This move could potentially lower the overall price that Boyd Gaming would need to offer for Penn Entertainment.
Analysts have been skeptical about the feasibility of a $9 billion acquisition by Boyd Gaming and the willingness of Penn Entertainment to sell. One of the main obstacles in this potential deal is the reluctance of Boyd Gaming to pay for ESPN Bet, which could require a third party to step in and acquire Penn’s interactive unit. This is where Flutter Entertainment could come in, as they have a strategic interest in these digital assets.
While Flutter’s involvement could help reduce the price tag for Boyd Gaming, there are still regulatory hurdles that need to be overcome. Both companies operate regional casinos in many of the same states, requiring approval from at least 10 state gaming regulators and the Federal Trade Commission. Asset sales in certain states may be necessary to gain regulatory approval, but this could be challenging given the current economic conditions in regional gaming markets.
In conclusion, the potential partnership between Flutter Entertainment, Boyd Gaming, and Penn National Gaming could reshape the landscape of the gaming industry. While there are still obstacles to overcome, such as regulatory approvals and asset sales, the involvement of Flutter could be a game-changer in making this deal a reality. Investors will be closely watching the developments in the coming weeks to see how this story unfolds.
