Flutter Buys Out Boyd Gaming's Ownership in FanDuel
Flutter Entertainment has finalized a $1.76 billion agreement to acquire Boyd Gaming Corporation's remaining 5% stake in FanDuel, giving Flutter full ownership of the US-focused sports betting and iGaming brand. The transaction ends Boyd's equity interest in FanDuel, which began in 2018 when the two companies partnered to capitalize on the newly opened US sports betting market following the repeal of PASPA.
LISTEN TO THIS ARTICLE:FanDuel is now valued at an implied $31 billion under the terms of the buyout, according to a press release. Flutter will finance the acquisition through a $1.75 billion senior secured bridge loan arranged with a group of banks. The funding will cover the purchase cost, related fees, and other general corporate expenses.
Related: FanDuel Casino Launches Progressive Jackpot in 3 StatesThe company expects to close the transaction in the third quarter of 2025, pending regulatory approval. Flutter stated that while its leverage will increase temporarily due to the financing, it remains committed to reaching a medium-term target leverage ratio of 2.0 to 2.5 times net debt to EBITDA.
As part of the agreement, revised commercial terms between Flutter and Boyd will significantly reduce FanDuel's market access costs in jurisdictions where Boyd provides licensing support. These include a fixed-fee arrangement for FanDuel's mobile sportsbook operations in Iowa, Indiana, Kansas, Louisiana and Pennsylvania, as well as its iCasino platform in Pennsylvania. Flutter projects that the updated terms will generate annual cost savings of approximately $65 million, starting from July 1.
Flutter's leadership described the 2018 acquisition of FanDuel as a transformative moment in the group's history. The combination of FanDuel's advantages in the US market with Flutter's proprietary technology and operational scale—referred to as the "Flutter Edge"—has helped establish FanDuel as a leader in both online sports betting and iGaming. Currently, FanDuel holds a 43% share of the US online sports betting market and a 27% share in iGaming, according to the latest company data.
Boyd Gaming intends to use the proceeds from the sale to reduce corporate debt. The company stated that monetizing its stake in FanDuel unlocks significant unrealized value and strengthens its financial position. Boyd plans to use its improved balance sheet to reinvest in property development, pursue strategic growth opportunities, and return capital to shareholders, all while maintaining financial discipline.
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Buyout Comes with Favorable Terms for FanDuel
In conjunction with the equity transaction, Boyd and FanDuel agreed to terminate several existing market access agreements and replace them with updated terms. These revisions allow FanDuel to continue operating Boyd's retail sportsbooks outside of Nevada through the middle of next year.
After that period, Boyd will take full control of those retail operations. Boyd anticipates its online gambling operations will generate $50 million to $55 million in operating income under the new arrangement, with around $30 million projected for 2026.
Boyd highlighted that its partnership with FanDuel has delivered strong financial results and facilitated the company's participation in the expansion of legal sports betting in the US. Boyd has benefited from FanDuel's nationwide growth, while FanDuel leveraged Boyd's market access and operational footprint to strengthen its presence in key states.
Flutter emphasized that achieving full ownership of FanDuel and renegotiating market access terms with Boyd are strategically important steps for long-term growth. The company noted that these changes enhance operational efficiency and help protect against rising regulatory costs and tax burdens in various jurisdictions.
The transaction supports Flutter's broader objectives in the evolving US market, where competitive scale and proprietary technology remain essential for profitability. In addition, the deal not only solidifies Flutter's control of FanDuel but also extends the strategic relationship between the two companies through 2038.
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