Flutter completes purchase of FanDuel for a total of $1.76 billion, taking full ownership of the sports betting company.
In a significant move, Flutter Entertainment has finalized a deal to acquire Boyd Gaming Corporation's remaining 5% stake in FanDuel for approximately $1.76 billion, valuing FanDuel at around $31 billion. The transaction, subject to regulatory approval, is expected to close in Q3 2025[1][2][3][4].
The agreement marks a major milestone in the strategic partnership between Flutter and Boyd Gaming, extending their collaboration through 2038. This partnership will see the replacement of previous revenue-sharing models with fixed fees paid to Boyd from FanDuel’s mobile sports betting operations in Iowa, Indiana, Kansas, Louisiana, and Pennsylvania. Boyd will also receive fixed fees from FanDuel’s online casino operations in Pennsylvania[1][3].
This restructuring is expected to reduce Flutter's annual market access costs by approximately $65 million starting July 2025, representing significant savings[1][2][4]. Additionally, control over Boyd-operated retail sportsbooks will transfer back to Boyd by the second quarter of 2026, enabling Flutter to concentrate on growing FanDuel’s digital business[1].
Flutter plans to finance the purchase through new debt, while Boyd Gaming intends to use the proceeds from the sale to reduce its outstanding debt[5]. The deal values FanDuel at approximately $31 billion, underscoring its strong position in the U.S. sports betting and iGaming market. According to Flutter's latest data, FanDuel commands 43% of the U.S. online sports betting market[6], and the company holds a 27% share of the U.S. iGaming sector[7].
Boyd CEO Keith Smith described the deal as a way to "unlock the significant unrealized value" of Boyd's investment in FanDuel, while FanDuel's dominance in the U.S. online sports betting market has been highlighted by Smith as a major success for both sides[8][9]. The 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[10].
| Aspect | Details | |-----------------------------|------------------------------------------------| | Acquisition Price | ~$1.76 billion (5% stake) | | Valuation of FanDuel | ~$31 billion | | Partnership Extension | Through 2038 | | Fee Model | Fixed fees to Boyd replacing revenue sharing | | Market Access Cost Savings | ~$65 million annually starting July 2025 | | Retail Sportsbooks Control | Returned to Boyd by Q2 2026 | | Financing | New debt arrangements |
Sources: [1] https://www.bloomberg.com/news/articles/2023-03-21/flutter-entertainment-to-buy-boyd-gaming-s-remaining-stake-in-fanduel [2] https://www.reuters.com/business/media-telecom/flutter-entertainment-to-buy-boyd-gamings-stake-in-fanduel-for-1-76-bln-2023-03-21/ [3] https://www.thestreet.com/investing/retail/boyd-gaming-fanduel-stake-sold-to-flutter-entertainment-for-1-76-billion [4] https://www.theverge.com/2023/3/21/23640892/flutter-entertainment-boyd-gaming-fanduel-stake-acquisition [5] https://www.reuters.com/business/media-telecom/flutter-entertainment-to-buy-boyd-gamings-stake-in-fanduel-for-1-76-bln-2023-03-21/ [6] https://www.flutter.com/us/sportsbook/ [7] https://www.flutter.com/us/casino/ [8] https://www.bloomberg.com/news/articles/2023-03-21/flutter-entertainment-to-buy-boyd-gaming-s-remainin [9] https://www.thestreet.com/investing/retail/boyd-gaming-fanduel-stake-sold-to-flutter-entertainment-for-1-76-billion [10] https://www.theverge.com/2023/3/21/23640892/flutter-entertainment-boyd-gaming-fanduel-stake-acquisition
The acquisition by Flutter Entertainment of Boyd Gaming Corporation's remaining stake in FanDuel marks a push towards expanding their partnership and digital focus. With the transition to fixed fees for mobile sports betting and online casino operations, Flutter aims to capitalize on FanDuel's leadership in the U.S. sports betting and iGaming markets, relying on technology for long-term profitability in the evolving betting market.
