Flutter gains full ownership in FanDuel after $1.8bn agreement with Boyd Gaming
Boyd Gaming also provided updated financial projections for its online segment in FY2025 and 2026, including an expectation of $50-55m in operating income and adjusted EBITDAR.
Key points:
– The 100% ownership stake in FanDuel results in an implied valuation of $31bn for Flutter, which agreed to definitive bridge credit agreements with multiple banks to help fund the transaction
– Flutter and Boyd Gaming also extended its strategic partnership to 2038, set to provide reduced market access costs which are projected to save Flutter $65m annually beginning in 2025
Flutter Entertainment is set to pay Boyd Gaming approximately $1.8bn ($1.755bn) to gain a full 100% ownership stake in FanDuel sportsbook, as the two operators also agreed to extend its strategic partnership to 2038 as part of the transaction.
As a result of the extended partnership, Flutter Entertainment expects to save roughly $65m annually due to “significantly reduced” market access costs in the states where FanDuel’s entry is provided by Boyd Gaming.
The transaction is expected to be finalized in the third quarter of 2025, pending regulatory approvals, as Boyd Gaming reportedly plans to use the proceeds in reducing the company’s overall debt.
“This transaction unlocks the tremendous unrealized value that our investment in FanDuel has created for our Company. As a result, we are in a significantly stronger financial position to continue executing our strategy of investing in our properties, pursuing growth opportunities, returning capital to our shareholders and maintaining a strong balance sheet,” Boyd Gaming President and CEO Keith Smith said.
“The partnership between Boyd and FanDuel has been a remarkable success for both companies. FanDuel has emerged as the nation’s clear leader in online sports-betting, while Boyd has been able to leverage this partnership to profitably participate in the rapid growth of sports betting across the country.”
Boyd Gaming also provided updated financial projections for its online segment in full year (FY) 2025 and FY2026, including an expectation of $50-55m in operating income and adjusted EBITDAR generated throughout each period.
The 100% ownership stake in FanDuel results in an implied valuation of $31bn for Flutter, which agreed to definitive bridge credit agreements with multiple banks to help fund the transaction along with a select group of its subsidiaries.
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“Our acquisition of FanDuel in 2018 is one of the most transformational events in our Group’s history, with its natural competitive advantages combined with access to Flutter Edge capabilities driving impressive growth to become the well-established and clear leader in US online sports betting and iGaming,” Flutter CEO Peter Jackson said.
“I am really pleased to drive future value for our shareholders by increasing our ownership of FanDuel to 100%. Boyd have been fantastic partners for FanDuel, and we are delighted to be extending our important strategic partnership through to 2038.”
The agreement is set to provide Boyd Gaming with a fixed fee per state from FanDuel’s online betting access in Iowa, Indiana, Kansas, Louisiana and Pennsylvania, as well as its online casino operations in Pennsylvania once the transaction is finalized.
FanDuel will also continue to operate Boyd Gaming’s retail sportsbooks outside of Nevada through the first half of 2026 when Boyd will then assume responsibility for the operations, having carried a 5% equity stake in the sportsbook prior to agreement.
In related financial news, Flutter completed its acquisition of a 56% stake in NSX Group on May 15, the operator of Brazilian sportsbook brand Betnacional, for a cash consideration of approximately $350m.
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