Flutter Entertainment Acquires Full Ownership of FanDuel in $1.76 Billion Deal
Flutter Entertainment Completes Acquisition of FanDuel
Flutter Entertainment has finalized an agreement to purchase the remaining 5% stake of FanDuel from Boyd Gaming Corporation for $1.755 billion. This acquisition grants Flutter complete ownership of FanDuel, a leading sportsbook and iGaming platform in the United States. The transaction values FanDuel at an impressive $31 billion and is set to reshape the US sports betting landscape.
Financing and Regulatory Outlook for the FanDuel Acquisition
The transaction is expected to conclude by the third quarter of 2025, pending approval from regulatory authorities. Flutter has arranged a bridge credit facility amounting to $1.75 billion to finance the purchase and cover associated costs. This strategic move demonstrates Flutter’s commitment to consolidating its position in the competitive US market.
Moreover, the deal extends the longstanding partnership between Flutter and Boyd Gaming through 2038. As part of the new arrangement, FanDuel will benefit from significantly reduced market access fees in five key states: Indiana, Iowa, Kansas, Louisiana, and Pennsylvania, all of which Boyd assists in entering. These fee reductions are anticipated to save Flutter approximately $65 million annually starting in July 2025.
Additionally, Boyd Gaming and FanDuel have restructured their operational agreements. FanDuel will continue managing Boyd’s physical sportsbooks outside Nevada until mid-2026, at which point Boyd will take over their management. Boyd will also receive fixed fees for each state where FanDuel provides online sports betting and casino services within the agreed markets.
Impact of the FanDuel Sale on Boyd Gaming and Flutter’s Expansion
Boyd Gaming’s leadership highlighted that the sale unlocks significant value from their initial investment in FanDuel, bolstering the company’s financial standing. Proceeds from the transaction will be used to reduce debt, enhance property development, deliver shareholder returns, and support future growth initiatives.
Keith Smith, CEO of Boyd Gaming, emphasized the mutual benefits of the partnership, noting that Boyd gained exposure to the burgeoning sports betting sector while FanDuel established itself as the premier online sportsbook in the US.
Flutter’s CEO, Peter Jackson, described the acquisition as a major milestone, attributing FanDuel’s rapid expansion since Flutter’s initial investment in 2018 to the platform’s strengths and Flutter’s global resources. He expressed confidence that full ownership of FanDuel would increase shareholder value and maintain FanDuel’s leadership in the market.
Currently, FanDuel leads the US market with a 43% share of sports betting and a 27% share of the online gaming sector. This acquisition is poised to further cement Flutter’s dominant position within the growing online gambling industry.