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Flutter Entertainment is set to take full control of FanDuel Group by purchasing Boyd Ga,ing;s 5% stake for approximately $1.76 billion. Currently, Flutter holds a 95% interest in FanDuel, having first acquired a majority stake in 2018 and later increasing its holdings in 2021 through an additional purchase from Fastball.
This new agreement not only makes Flutter the sole stakeholder in FanDuel but also values the company at around $31 billion. As part of the deal, Flutter will continue its strategic partnership with Boyd, which began in 2018, to help FanDuel enter the US market after the repeal of PASPA. This partnership is now extended through to 2038.
The acquisition is subject to standard closing conditions, including regulatory approvals, and Flutter plans to finance the deal with new debt. The company expects to finalize the transaction by Q3 2025.
In a statement published yesterday (Jun 10), Flutter CEO Peter Jackson stated, “I’m really pleased to drive future value for shareholders by increasing our ownership of FanDuel.”
“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.”
Boyd and Flutter to Partner till 2038
In addition to the purchase, Boyd and Flutter have also agreed to extend their strategic partnership until 2038. This collaboration is set to generate annual savings of approximately $65 million starting from July 1, 2025.
Under the terms, Flutter will benefit from reduced market access costs in states where Boyd facilitates FanDuel’s operations, including online sports betting in Indiana, Iowa, Kansas, Louisiana, and Pennsylvania, as well as online casino services in Pennsylvania. Boyd will receive a fixed fee for each state involved.
Additionally, as part of this arrangement, FanDuel will transfer control of Boyd’s retail sportsbooks outside Nevada to Flutter. Flutter will manage these locations until mid-2026, at which point Boyd will take over the operations.
“This transaction unlocks the tremendous unrealised 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,” Keith Smith, president and CEO of Boyd, stated.
“The partnership between Boyd and FanDuel has been a remarkable success. 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.”
Peter Jackson added, “Boyd have been fantastic partners for FanDuel, and we are delighted to be extending our important strategic partnership through to 2038.”
Fox Might Make a Move
Despite the recent deal with Boyd that allows Flutter to gain full ownership of FanDuel, the company might face pressure to sell a portion of its stake. Fox Corporation holds an option to acquire an 18.6% equity interest in FanDuel, which must be executed by December 3, 2030.
This opportunity, established in December 2020, is known as the ‘Fox Option’ and comes with a valuation of $20 billion, plus an annual increase of 5%. If Fox decides to proceed with this option, it would mean paying $4.5 billion in cash for the stake.
However, Fox can only acquire the full percentage and must also secure a license as a gambling operator before taking on any ownership. Reports from last year indicated that Fox was contemplating this option, with CEO Lachlan Murdoch mentioning a desire to acquire the stake at a lower price of $2.2 billion, which is significantly below its market value.
Source: iGB
