Entertainment
Flutter Entertainment has finalized a $1.76bn agreement to acquire Boyd Gaming Corporation’s remaining 5% stake in FanDuel, granting Flutter full ownership of the sportsbook brand.
The deal also extends their strategic partnership with Boyd through 2038.
Flutter plans to finance the purchase through new debt and expects to close the transaction in Q3 2025, pending regulatory approval. The deal values FanDuel at approximately $31bn and includes updated commercial terms that will reduce licensing costs in states where Boyd facilitates market access-resulting in projected annual savings of around $65m starting 1 July.
Peter Jackson, Flutter CEO, mentioned:
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.
I am really pleased to drive future value for our shareholders by increasing our ownership of FanDuel to 100%. Boyd have been fantastic partners for FanDuel, and we are delighted to be extending our important strategic partnership through to 2038.
According to Flutter’s latest data, FanDuel commands 43% of the U.S. online sports betting market and holds a 27% share of the iGaming sector.
To finance the acquisition, Flutter has secured a $1.75bn senior secured bridge loan through a new credit agreement with a consortium of banks. This funding will cover the purchase price, related fees, and general corporate expenses.
While the transaction will lead to a temporary rise in leverage, Flutter reaffirmed its commitment to reaching its medium-term net debt to EBITDA target of 2.0-2.5x.
Boyd Gaming, meanwhile, intends to use the proceeds from the sale to reduce its outstanding debt. CEO and president Keith Smith described the deal as a way to “unlock the significant unrealized value” of Boyd’s investment in FanDuel.
Alongside the equity sale, Boyd and FanDuel have agreed to replace certain legacy market-access agreements with updated terms.
The new agreements introduce a fixed-fee model for FanDuel’s mobile sportsbook operations in Iowa, Indiana, Kansas, Louisiana, and Pennsylvania, as well as its online casino offering in Pennsylvania.
FanDuel will also continue managing Boyd’s retail sportsbooks outside Nevada through mid-2026, after which Boyd will take over operations.
Under the revised terms, Boyd anticipates its online division will generate between $50 million and $55 million in operating income and adjusted EBITDAR in 2025, with approximately $30 million expected in 2026.
Boyd CEO Keith Smith called the partnership a major success for both sides, noting that FanDuel has become the dominant force in U.S. online sports betting, while Boyd has gained profitable exposure to the sector’s rapid growth.
Flutter highlighted the long-term financial and strategic advantages of the deal, noting that the revised market access terms with Boyd will help lower operating costs and offer greater protection against future tax increases and regulatory changes in the U.S.
The company called the agreement “a key strategic milestone achieved on favorable terms.”
This acquisition strengthens Flutter’s leadership in the evolving U.S. betting market, where scale, operational efficiency, and in-house technology are essential for maintaining long-term profitability.
Read More
Ani Ghahramanyan