In March 2022, Pala Interactive agreed to see its business to Boyd Gaming Corporation for $170M. In a time when iGaming is booming, this represents a strategic move for Boyd Gaming Corporation, in moving into various different markets with their gaming portfolio. This acquisition comes hot on the heels of Impala Interactive’s approval for operation in the newly launched Ontario iGaming market.
The acquisition follows around a year of Pala shopping their business to the open market. After building a reputable tech brand and following, the reason for the sale was communicated that Pala didn’t wish to have a tech brand as part of their portfolio. The sale itself amounts to 34 times Pala Interactive’s 2021 earnings.
Boyd, to Pala, seemed like the “right fit” for the future of the company, and taking their competitive interests to the next level. The deal itself is to be completed by the first quarter of 2023, with relative assurity that everything will go according to plan.
Who are Pala Interactive?
Historically, the Pala Band of Mission Indians, founded under the Pala Reservation in California, has been in existence since 1875. The Pala Band of Mission Indians is comprised of descendants of both the Cupeño and Luiseño peoples, who had shared custody of the land space.
Under tribal laws, the Pala Band of Mission Indians have a number of different arms of business that aren’t available to other non-tribal jurisdictions. The businesses owned and operated under the tribe include Pala Casino, Fox Raceway, Pala Skatepark, Pala Fitness Center and the Pala Shooting range.
Pala Interactive, of which the majority owners were the the Pala Band of Mission Indians, was founded in 2013. The iGaming supplier is made up of various segments, which include a player management system, casino, poker, and integrated sports. Irrespective of the newly-acquired ownership, Pala’s offerings still maintain their top-of-the range and cutting edge standards. Therefore, it makes sense for it to collaborate with popular casinos like Kings Chance, who equally strives to offer its players an extensive collection of top-notch casino games from multiple leading game development companies.
Who are Boyd Gaming
Boyd Gaming Corporation is a gaming company based out of Paradise, Nevada. Their portfolio contains numerous physical casinos over several US states, across Las Vegas, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. Boyd also offers sports betting online in Nevada. This new addition to their online component helps establish Boyd in the newly flourishing and regulated online gaming market, a move which is sure to help the company going into the future.
The mergers and acquisitions space in iGaming is hotting up, as competitiveness increases, new markets emerge, and gaming super-groups emerge. The iGaming space is likely to be hot property for at least the decade to come. You can see this in new deals inked, such as Penn National Gambling Inc. acquiring Score Media and Gaming Inc, and DraftKings acquiring Golden Nugget Online Casino. In the space, we are seeing a lot of movements in acquiring gaming arms that a company such as large sportsbooks acquiring online casinos or vice versa.
The time is ripe for tribes across the US to peddle their online gaming businesses, considering the current market interest. For established gaming houses, these acquisitions can make for an easy intro to a newly established market, where they can then increase their footprint. For gaming operations with a lean towards a physical portfolio, it’s an easy way to expand more into digital. Thus, it’s a win-win for both sides.