Flutter will gain 100% ownership of its FanDuel assets after agreeing to buy off Boyd’s 5% equity in the US brand.
The consolidation of Flutter’s US-facing sports betting and iGaming business will pay Boyd an all-cash transaction of approximately $1.7bn (£1.3bn), expected to close in the third quarter of 2025.
Of the total amount, $1.5bn is attributable to the 5% stake acquisition and around $205m will be used to execute a number of commercial terms.
These include a shift from revenue-share to fixed-fee arrangements relating to market access costs in the states where Boyd provides access to FanDuel – Indiana, Iowa, Kansas, Louisiana and Pennsylvania. These agreements have now been extended to 2038.
Flutter expects the subsequent market access cost cuts to result in annual group savings of approximately $65m starting 1 July 2025.
Under a 100% Flutter ownership, FanDuel will reach an approximate nominal valuation of $31bn, boosting what is already a significant domestic presence with sports betting and iGaming market share of 43% and 27% respectively in the states where the brand is live.
FanDuel is also currently operating Boyd retail sportsbooks across a number of states. Control of these venues will be handed over back to Boyd in Q2 2026, which will further reduce operating costs and scale FanDuel’s digital growth through a mobile-first focus.
Flutter Entertainment: Peter Jackson (CEO)
Peter Jackson, Flutter CEO, commented: “Our acquisition of FanDuel in 2018 is one of the most transformational events in our Group’s history, with its natural competitive advantages…driving impressive growth to become the well-established and clear leader in US online sports betting and iGaming.
“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 gets a debt reduction boost
For Boyd, the revised market access agreements are expected to generate between $50m and $55m in online operating income and Adjusted EBITDAR for FY25, and around $30m for FY26.
Boyd management has confirmed that it will use net proceeds from the sale of FanDuel’s equity to reduce debt levels. As per the company’s Q1 2025 statement, Boyd Gaming had a total debt of $3.5bn.
Keith Smith, Boyd President and CEO, said: “This transaction unlocks the tremendous unrealised 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.”
