Boyd Gaming completes casino buy
Last December, Boyd Gaming Corporation announced that it had entered into an agreement to acquire Valley Forge Casino Resort from Valley Forge Convention Center Partners LP for a cash consideration of $280.5 million.
That move was finalized this week, as the popular First Avenue fun palace in King of Prussia became the Vegas-based company’s first property in the state of Pennsylvania. With Valley Forge now under its wing, Boyd owns and operates 25 casino properties in eight states – Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi and Pennsylvania.
“Valley Forge represents a key expansion of our nationwide portfolio, giving us the opportunity to serve the vibrant Northeast region,” said Keith Smith, President and Chief Executive Officer of Boyd Gaming in a press release. “This is a moment of significant opportunity for Pennsylvania’s gaming industry, and we look forward to exploring future growth initiatives at this property.”
Smith indicated that gamers can expect to enjoy an additional 250 slot machines on the casino floor in the near future, while Boyd examines the “opportunity to offer both online gaming and
sports wagering through our partnership with FanDuel Group. We see attractive growth potential at Valley Forge, and are pleased to welcome the entire Valley Forge team to Boyd Gaming.”
Morrison & Foerster LLP served as legal advisor to Boyd Gaming for the transaction, while Moelis & Company LLC served as the financial advisor to Boyd Gaming.
Cozen O’Connor served as legal advisor to Valley Forge Casino Resort.
Early on in the acquisition process, Smith had noted: “The acquisition of Valley Forge Casino Resort is another excellent opportunity to further grow and diversify our nationwide portfolio. With this acquisition, we will expand into the second-largest gaming state in the country, establishing a presence in a densely populated, high-traffic area just west of Philadelphia. And thanks to Pennsylvania’s recent passage of gaming expansion legislation, there are new opportunities to drive incremental growth at Valley Forge through the expansion of the property’s slot capacity and the introduction of new forms of gaming.”
According to the American Gaming Association, Pennsylvania casinos rake in more gross revenues than any other state in the country except Nevada.
In keeping with the recent legislation, the $10 admission casino fee that had been enforced since Valley Forge Casino Resort opened in March, 2012, had been eliminated, which made the situation that much more appealing to Boyd, spokesman David Strow had allowed.
“Obviously, that makes the opportunity to operate in Pennsylvania more attractive, but even before this legislation passed, Pennsylvania was an attractive market for us. It was a state where we did not currently have operations and it’s the second largest gaming state in the country. It trails only Nevada. In terms of commercial casinos, Pennsylvania is now ahead of New Jersey.”