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Boyd Gaming (BYD) to Revive Stardust Brand With FanDuel Tie-Up

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In a bid to revive Stardust-branded online casinos, Boyd Gaming Corporation (BYD - Free Report) in collaboration with FanDuel Group announced plans to launch online casinos in New Jersey and Pennsylvania. Following the announcement, shares of the company moved up 0.9% during trading hours on Mar 8, 2021.

Notably, the Stardust online casino in Pennsylvania represents a new launch, while New Jersey’s online casino represents Betfair Casino rebranding to Stardust brand. The casinos are expected to be launched in April 2021, subject to regulatory approvals from each state.

In this regard, Keith Smith, president and chief executive officer of Boyd Gaming, stated, “We are excited to work with our partners at FanDuel to launch our first real-money online casinos and are confident this legendary brand will give us a significant advantage in connecting with players looking for a distinctive online gaming experience."

Likely to be made available at both iOS and android platforms, the free-to-play application will be based on FanDuel's proprietary front-end, application and player account management system. The accounts will be linked to Boyd Gaming's B Connected player loyalty program. The company intends to launch a single Stardust Casino app in New Jersey and Pennsylvania.

Interactive Gaming to Drive Growth

Since the outbreak of coronavirus, Boyd Gaming is witnessing solid performance by the interactive gaming platform. In 2020, online gaming contributed more than $10 million to EBITDAR backed by FanDuel's mobile sports operation in Pennsylvania, Illinois, Indiana, and Iowa.

Thanks to the strategic partnership with FanDuel, the company is optimistic regarding its future in the iGaming industry. For 2021, the company expects online business to contribute more than $20 million to EBITDAR. Moreover, it expects contributions from the to-be launched Stardust iCasino in Pennsylvania.



In the past six months, shares of the Boyd Gaming have surged 116.4%, compared with the industry’s rally of 35.4%.

Zacks Rank & Key Picks

Boyd Gaming carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the Zacks Consumer Discretionary sector include Crocs, Inc. (CROX - Free Report) , Rocky Brands, Inc. (RCKY - Free Report) and Corsair Gaming, Inc. (CRSR - Free Report) . Crocs and Rocky Brands sport a Zacks Rank #1 (Strong Buy), while Corsair Gaming carries a Zacks Rank #2 (Buy).

Crocs has a three-five year earnings per share growth rate of 15%.

Rocky Brands’ 2021 earnings are expected to rise 13.6%.

Corsair Gaming has a trailing four-quarter earnings surprise of 52.8%, on average.

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