Flutter Entertainment is set to acquire Boyd Gaming’s remaining 5% stake in FanDuel for approximately $1.75 billion, solidifying Flutter’s full ownership of the leading online sports betting platform. This strategic move allows Boyd Gaming to realize significant value from its investment while establishing new, extended market-access agreements with FanDuel.
Flutter Secures Full Ownership of FanDuel
Flutter Entertainment, the parent company of FanDuel, is purchasing Boyd Gaming’s 5% equity interest in FanDuel for a cash consideration of $1.75 billion. This transaction will grant Flutter 100% ownership of FanDuel, a key player in the U.S. online sports betting market with a 43% market share.
Boyd Gaming’s Strategic Exit and Future Partnership
Boyd Gaming’s decision to sell its stake is a strategic financial move, allowing the company to unlock substantial value from its initial investment. Keith Smith, President and CEO of Boyd Gaming, stated that the transaction "unlocks the tremendous unrealized value that our investment in FanDuel has created for our Company." The proceeds from the sale are expected to be used to reduce Boyd Gaming’s debt.
As part of the deal, Boyd and FanDuel have forged new market-access agreements extending through 2038. These agreements will provide Boyd Gaming with a fixed fee per state from FanDuel’s mobile sports betting operations in Iowa, Indiana, Kansas, Louisiana, and Pennsylvania, as well as online casino operations in Pennsylvania.
Key Takeaways
- Flutter Entertainment will gain full ownership of FanDuel by acquiring Boyd Gaming’s 5% stake.
- The transaction is valued at approximately $1.75 billion.
- Boyd Gaming will use the proceeds to pay down debt.
- New market-access agreements between Boyd Gaming and FanDuel will run through 2038.
- FanDuel will continue to operate Boyd’s retail sportsbooks outside Nevada until mid-2026, after which Boyd will assume operations.
Implied Valuation and Market Impact
The acquisition implies a valuation of approximately $31 billion for FanDuel. This deal underscores FanDuel’s dominant position in the U.S. online sports betting landscape and Flutter’s commitment to consolidating its control over its most significant revenue generator. The transaction is subject to regulatory approvals and is anticipated to close in the third quarter of 2025.
While Boyd Gaming has a FanDuel-branded sportsbook at the Fremont Hotel & Casino in Las Vegas, FanDuel itself does not hold a physical license or operate physical locations within Nevada.
Sources
- Boyd Gaming selling stake in FanDuel for $1.75 billion, KSNV.
- $1.75 billion payoff ending Boyd Gaming investment in FanDuel, KLAS 8 News Now.
- wsj.com, The Wall Street Journal.
- Human Verification, Finimize.
- Flutter to buy Boyd Gaming’s 5% FanDuel stake in $1.76 billion deal, Reuters.
