By Oliver Griffin
Paddy Power Betfair PLC (PPB.DB) said Friday that its subsidiary, FanDuel Group, has entered into an agreement with Boyd Gaming Corp. /zigman2/quotes/206215159/composite BYD -0.48% to cooperate in the sport-betting and online-casino markets in the U.S.
Boyd Gaming will take a 4% equity stake in FanDuel in return for market access across its sports book and online gaming products in a number of U.S. states.
FanDuel will provide Boyd Gaming with technology and related services to operate the U.S. company's branded mobile and online sports betting and gaming services in those same states.
The agreement covers all states where Boyd Gaming already holds licenses, excluding Nevada, and will cover future states if and when it acquires new gaming licenses.
Paddy Power said that the deal means that FanDuel will potentially have access to 15 states across the U.S. Boyd Gaming will also have an option to purchase an additional 1% stake in FanDuel, the company said.