Flutter Looks to Raise $1.75B to Secure Total FanDuel Ownership
Flutter Entertainment Plc has initiated a new senior secured bond issuance aiming to raise $1.75 billion as part of its strategy to acquire full ownership of FanDuel, its US-based sports betting subsidiary. The FTSE-listed gaming company is offering the bonds in three separate currency tranches in US dollars, euros and British pounds, all of which are scheduled to mature in 2031.
LISTEN TO THIS ARTICLE:This new debt issuance builds on Flutter's earlier notes launched on June 4, 2025, and will be listed on The International Stock Exchange (TISE). According to Flutter's announcement, the fixed-rate structure of the bonds has been set to reflect currency risk and investor demand.
The US dollar tranche will carry a 5.875% interest rate, the euro tranche will be issued at 4.000%, and the British pound tranche will yield 6.125%. As senior secured notes, these instruments hold priority over Flutter's unsecured liabilities in the capital hierarchy, providing investors a higher level of security in the event of default.
In parallel with the bond placement, Flutter has activated a Fourth Incremental Term Loan B Facility under its existing US dollar loan framework. This additional borrowing expands the company's access to liquidity, strengthening its financial base as it proceeds with the acquisition of Boyd Gaming's remaining 5% stake in FanDuel. The transaction will result in Flutter gaining full ownership of the rapidly growing US sportsbook and iGaming brand.
The total capital outlay for the acquisition is expected to be approximately $1.7 billion. Of this amount, about $1.5 billion will be allocated to the equity purchase itself, while an additional $205 million will be used to restructure and extend commercial agreements with Boyd Gaming through 2038. These agreements grant FanDuel essential market access in five US states: Indiana, Iowa, Kansas, Louisiana, and Pennsylvania.
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New Revenue-Sharing Model to Save Company Millions
Under the revised terms, the revenue-sharing model previously used in these states will be replaced with a fixed-fee structure. Flutter estimates that this change will generate annual cost savings of $65 million starting July 1, 2025. The fixed-fee approach also provides greater cost predictability and aligns with Flutter's broader objectives to optimize operational efficiency within its US footprint.
Boyd Gaming has confirmed that proceeds from the FanDuel stake sale will be directed toward reducing its outstanding debt, which stood at $3.5 billion at the end of the first quarter of 2025. The company also projects that the revised partnership model will enhance its online gaming earnings by $50 million to $55 million during the 2025 fiscal year.
As part of its strategic refocus on digital operations, Flutter has outlined plans to transfer control of retail sportsbook operations currently managed in partnership with Boyd Gaming. This transition is targeted for completion by the second quarter of 2026 and is expected to streamline Flutter's US operations by emphasizing mobile-first betting services.
Flutter will release its 2025 Interim financial results on Thursday, August 7. Investors and analysts are expected to scrutinize the report closely, with particular interest in FanDuel's financial performance amid record comparatives.
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