Flutter Entertainment has reached a definitive agreement to acquire Boyd Gaming's remaining equity stake in FanDuel, a transaction valued at approximately
Flutter Entertainment has reached a definitive agreement to acquire Boyd Gaming’s remaining equity stake in FanDuel, a transaction valued at approximately $1.8 billion (specifically $1.755 billion). This landmark deal will grant Flutter a 100% ownership stake in FanDuel, valuing the leading US online sports betting and iGaming operator at an implied $31 billion. Beyond the acquisition, the long-standing strategic partnership between Flutter and Boyd Gaming is also set to be extended through 2038.
Peter Jackson, CEO of Flutter, commented on the significance of the transaction, stating that Flutter’s acquisition of FanDuel in 2018 stands as “one of the most transformational events in our Group’s history.” He highlighted FanDuel’s “natural competitive advantages” combined with access to Flutter Edge capabilities as key drivers for its impressive growth and its established leadership position in the US online sports betting and iGaming markets. Jackson expressed immense satisfaction in increasing Flutter’s ownership of FanDuel to 100%, emphasizing Boyd Gaming’s role as a “fantastic partner” and expressing delight in extending their important strategic partnership.
Boyd Gaming has agreed to divest 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. A crucial financial benefit for Flutter from this transaction is the anticipated “significantly reduced” market access costs in states where Boyd Gaming provides entry for FanDuel. These cost reductions are expected to generate approximately $65 million in annual savings for Flutter, commencing from July 1, 2025.
The transaction is slated for completion in the third quarter of 2025, contingent upon securing necessary regulatory approvals. Boyd Gaming has indicated its intention to strategically utilize the proceeds from this sale to substantially reduce its overall debt. Concurrently, Boyd Gaming has provided updated financial projections for its full year (FY) 2025 and FY2026. The company anticipates generating between $50 million and $55 million in operating income and adjusted EBITDAR from its online segment for both fiscal years.
Keith Smith, President and CEO of Boyd Gaming, described the transaction as unlocking “the tremendous unrealized value that our investment in FanDuel has created for our Company.” He noted that as a result, Boyd Gaming is now in a “significantly stronger financial position” to continue executing its strategy of investing in its properties, pursuing growth opportunities, returning capital to shareholders, and maintaining a robust balance sheet. Smith also reflected on the enduring collaboration, stating that the partnership between Boyd and FanDuel has been “a remarkable success for both companies.” He added that “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.”
Flutter Entertainment’s financial results for the first quarter of 2025, released on May 7, demonstrated an 8% year-on-year increase in group revenue, reaching $3.7 billion, with FanDuel alone accounting for over $1.1 billion of that figure. To help fund the approximately $1.8 billion transaction, Flutter and a group of its subsidiaries have entered into a definitive bridge credit agreement with multiple banks, securing binding commitments for the necessary capital.
Once finalized, the agreement will also provide Boyd Gaming 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. Additionally, FanDuel will continue to operate Boyd Gaming’s retail sportsbooks outside of Nevada through the first half of 2026, after which Boyd will assume responsibility for those businesses. The complete ownership of FanDuel by Flutter is poised to further solidify its market leadership and streamline its strategic operations in the dynamic US online gaming landscape.
