Flutter Set to Acquire Boyd Gaming’s FanDuel Stake

Flutter and Boyd Gaming have had a mutually beneficial relationship thanks to their respective shares in FanDuel and synergy between the two companies. Although that relationship will continue, Flutter has agreed to buy Boyd Gaming’s 5% FanDuel stake.

Good Deal

It is only a matter of time before the most popular mobile sports betting provider, FanDuel, has one owner after Flutter Entertainment agreed to purchase Boyd Gaming’s 5% share for $1.76 billion. This purchase gives FanDuel an implied valuation of approximately $31 billion, considering the stake was worth $1.55 billion, while there was an additional $205 million for the revision of existing commercial terms.

Flutter CEO Peter Jackson believes this deal creates more value for its shareholders.

“Our acquisition of FanDuel in 2018 is one of the most transformational events in our Group’s history, with its natural competitive advantages combined with access to Flutter Edge capabilities driving impressive growth to become the well-established and clear leader in US online sports betting and iGaming,” Jackson said.

“I am really pleased to drive future value for our shareholders by increasing our ownership of FanDuel to 100%,” Jackson added.

Boyd Unlocks Value, Reinvests in the Future

As for Boyd Gaming, the capital will allow it to reduce debt, with Keith Smith, president and chief executive officer of Boyd, saying, “This transaction unlocks the tremendous unrealized 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.”

Extended Contract

Although the deal between Flutter and Boyd Gaming not only saw the latter sell its shares in FanDuel to the Irish-American multinational sports betting and gambling company, Flutter Entertainment, it also triggered an expanded contract between the two gaming companies that extends to 2038.

As part of this renewed access deal, beginning on July 1, 2025, Boyd will receive a fixed per-state fee from mobile sports betting in Iowa, Indiana, Kansas, Louisiana, and Pennsylvania. Boyd Gaming will also get a fixed fee from FanDuel’s online casino in Pennsylvania.

“The partnership between Boyd and FanDuel has been a remarkable success for both companies,” Smith said. “FanDuel has emerged as the nation’s clear leader in online sports betting, while Boyd has been able to leverage this partnership to profitably participate in the rapid growth of sports betting across the country.

Ticking Clock: Fox Faces Price Hike on FanDuel Stake

The sale of FanDuel shares between Flutter and Boyd Gaming is expected to close in the third quarter of this year, but it won’t be long before Fox exercises its option to buy 18.6% of FanDuel after it agreed to buy The Stars Group in 2019, of which Fox was a partner in the doomed Fox Bet.

Fox Corporation CEO Lachlan Murdoch confirmed last September that his company plans to exercise that option, but it has until December 3, 2030, to do so. Yet, Fox will likely purchase those FanDuel shares due to a 5% escalator clause that will make this purchase more costly as the months go by. As of now, Fox will pay between $4.5 billion and $6.5 billion for the shares, depending on the valuation at the time of the sale.