Flutter to pay Boyd Gaming nearly $1.8bn for full ownership of FanDuel
The transaction is expected to close in the third quarter of 2025, subject to regulatory approvals, as Boyd Gaming intends to use the proceeds to reduce overall debt.
Key Points
- Boyd Gaming carried a 5% equity stake in FanDuel prior to the agreement, as the operator also released updated financial projections for FY2025
- Flutter’s 100% ownership stake of FanDuel results in an implied valuation of approximately $31bn, with the company also having extended its partnership with Boyd through 2038
Flutter Entertainment has agreed to pay Boyd Gaming approximately $1.8bn ($1.755bn) to secure a 100% ownership stake in FanDuel at an implied valuation of $31bn, as well as extend its strategic partnership with Boyd to 2038.
“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.”
Boyd Gaming agreed to sell its remaining 5% equity stake in FanDuel to Flutter, which has served as the owner and operator of the sportsbook for the past seven years.
Flutter is also set to receive “significantly reduced” market access costs in states where Boyd Gaming provides entry for FanDuel, expected to save the company approximately $65m in annual savings beginning July 1, 2025.
The transaction is expected to close in the third quarter of 2025, subject to regulatory approvals, as Boyd Gaming intends to use the proceeds to reduce overall debt. The company also provided updated financial projections for full year (FY) 2025, including between $50-55m in operating income and adjusted EBITDAR generated from its online segment in FY2025 and FY2026.
“This transaction unlocks the tremendous unrealized value that our investment in FanDuel has created for our Company,” Boyd Gaming President and CEO Keith Smith said.
“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.”
Good to know: Flutter Entertainment released its financial results from the first quarter of 2025 on May 7, having witnessed an increase in revenue of 8% year-over-year to $3.7bn, of which FanDuel accounted for over $1.1bn
The agreement will also provide Boyd with a fixed fee per state from FanDuel’s online wagering operations 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 such business.
Smith spoke on the partnership between the two operators, having 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. It has been a privilege to work with the Flutter and FanDuel teams, and we look forward to supporting FanDuel’s continued growth and success through our market-access agreements across the country.”
Boyd Gaming’s financial results throughout the first quarter of 2025 resulted in a total revenue increase of 3.2% year-over-year to $991.6m, while net income fell by 18.6% during Q1 2025 to report $110.9m.
Flutter and a group of its subsidiaries entered into a definitive bridge credit agreement with multiple banks to obtain binding commitments and help fund the near $1.8bn transaction.
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