Flutter Entertainment has officially announced the acquisition of the minority stake in FanDuel held by Boyd Gaming for approximately $1.8 billion (AUD 1.755 billion), securing 100% ownership of the FanDuel sports betting platform. Upon completion of this transaction, Flutter's implied overall valuation will reach $31 billion, with final bridge credit agreements already established with several banks.
Simultaneously, Flutter has extended its strategic partnership agreement with Boyd Gaming until 2038. Under the agreement, Boyd will continue to provide market access services for FanDuel in multiple states, with Flutter expecting to save approximately $65 million annually in access costs, optimizing its operational structure in the US market.
The transaction is expected to be completed in the third quarter of 2025, pending approval from relevant regulatory authorities. Boyd Gaming has stated that the funds from the transaction will be used to repay debt and enhance financial flexibility. Keith Smith, President and CEO of Boyd Gaming, mentioned that this transaction unlocks the significant unrealized value accumulated from the investment in FanDuel, supporting Boyd's ongoing strategies for capital returns, asset investments, and growth.
FanDuel is currently a leader in the US online sports betting sector, and Boyd Gaming has successfully shared in the expansion benefits of the US betting market through its partnership. Following the transaction, Boyd will also acquire online betting access rights in Iowa, Indiana, Kansas, Louisiana, and Pennsylvania, as well as a fixed licensing fee for online casinos in Pennsylvania.
Additionally, FanDuel will continue to operate Boyd's retail sports betting business outside Nevada until the first half of 2026, at which point Boyd will take over the operations. Previously, Boyd Gaming held a 5% stake in FanDuel.
Boyd Gaming has also released its latest financial forecasts for the online division for fiscal years 2025 and 2026, expecting annual operating revenue and adjusted EBITDAR to be between $50 million and $55 million.
Peter Jackson, CEO of Flutter, stated that acquiring FanDuel in 2018 was one of the most transformative decisions in the company's history. With FanDuel's natural market advantage and support from the Flutter Edge platform, it is poised to become the recognized leader in the US online sports betting and iGaming sectors. He said, "Increasing our stake to 100% will further enhance our ability to create long-term value for our shareholders."
Furthermore, Flutter has recently completed the acquisition of a 56% stake in the Brazilian brand Betnacional's parent company, NSX Group, for $350 million, further strengthening its layout in the Latin American market.
It is also worth mentioning that Flutter has announced a new fee of $0.50 per bet for Illinois users, in response to new tax rate mechanisms set by local legislators, which charge $0.25 for the first 20 million bets, increasing to $0.50 thereafter.
