Under the terms of the agreement, Flutter will pay Boyd approximately $1.755bn to acquire Boyd’s 5% stake in FanDuel and to revise various existing commercial terms, taking Flutter’s holding in the #1 sports betting and iGaming business in the US to 100% at an attractive implied valuation of approximately US$31bn.
The deal also provides for the extension of the strategic partnership between FanDuel and Boyd at significantly reduced market access costs in the states where FanDuel’s market access is provided by Boyd. This is expected to contribute to annual savings for Flutter of approximately US$65m beginning July 1, 2025.
The agreement delivers on key strategic objectives at attractive economics:
- Increased ownership of the market #1: This transaction secures 100% ownership of FanDuel, the premier asset in the US sports betting and iGaming market. FanDuel is the clear number one in the market with a 43% market share in sports betting and 27% in iGaming, driven by key sustainable competitive advantages, including access to the ‘Flutter Edge’.
- Leveraging scale to drive more efficient market access costs, benefiting long-term adjusted EBITDA margin: This transaction delivers more attractive market access terms in states where FanDuel’s market access is provided by Boyd and is expected to contribute annual operating cost savings of approximately US$65m. The savings are expected to be generated from July 1, 2025, and further underpin Flutter’s confidence in the long-term profitability profile of its US business, demonstrating the ability to help mitigate both recent and future tax increases.
The transaction is subject to customary closing conditions, including the receipt of certain regulatory approvals, is expected to be completed in Q3 2025, and will be funded by additional debt financing.
Peter Jackson, CEO of Flutter Entertainment, commented: “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.”
Keith Smith, President and Chief Executive Officer of Boyd, said: “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.”
Source: GMB
