Flutter to secure 100% FanDuel ownership as Boyd agrees to sell stake
Flutter Entertainment is to take full ownership of FanDuel Group after agreeing to purchase Boyd Gaming’s 5% stake in the business for approximately $1.76 billion.
At present, Flutter holds a 95% interest in the FanDuel brand. The group acquired an initial majority stake in FanDuel in 2018 before increasing this in 2021 by purchasing an increased holding from Fastball.
Flutter’s holding remained at 95% for the past few years but, should the Boyd stake purchase go through, this would see it become the solitary stakeholder in FanDuel. It would also place an approximate value on the FanDuel business of $31 billion.
The purchase remains subject to customary closing conditions, including certain regulatory approvals. However, Flutter, which will fund the deal with additional debt financing, expects to complete the acquisition in Q3 2025.
“I’m really pleased to drive future value for shareholders by increasing our ownership of FanDuel,” Flutter CEO Peter Jackson said in a statement released on Thursday.
“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.”
Flutter expects $65 million in annual savings
The agreement with Boyd also covers the extension of a strategic partnership between the two parties. Running to 2038, Flutter said this arrangement will result in annual savings of approximately $65 million from 1 July 2025.
The deal sets out “significantly” reduced market access costs in the states where FanDuel’s market access is provided by Boyd. This includes online sports betting in Indiana, Iowa, Kansas, Louisiana and Pennsylvania, as well as online casino in Pennsylvania. Boyd will receive a fixed fee per state.
Also as part of this deal, FanDuel will relinquish control of Boyd’s retail sportsbooks outside of Nevada. Flutter will operate the locations until mid-2026, after which Boyd will assume responsibility for the operations.
“Boyd have been fantastic partners for FanDuel, and we are delighted to be extending our important strategic partnership through to 2038,” Jackson said.
Keith Smith, president and CEO of Boyd, added: “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.
“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.”
FanDuel: from DFS to sports betting leader
Since acquiring its majority stake, Flutter has helped transform FanDuel from a daily fantasy sports brand into one of the leading sports betting and iGaming brands in the US.
According to Flutter, FanDuel has a 43% market share in sports betting, based on the GGR from states where it is active. FanDuel also holds 27% of the iGaming market share on the same basis.
Flutter’s initial acquisition coincided with the repeal of a federal ban on sports betting in the US. The Supreme Court overturned the 1992 Professional and Amateur Sports Protection Act in May 2018, allowing individual states to legalise sports wagering. Flutter announced the FanDuel deal just days after the ruling.
At present, 38 US states, plus Washington DC and Puerto Rico, offer legal sports betting. Of these, 32, and DC, permit online wagering. FanDuel is active in the majority of these states.
Success in the US also saw Flutter list on the New York Stock Exchange. The group began trading in January 2024, with shares closing at $289.58 on 10 July.
In Q1, Flutter’s US business, led by FanDuel, posted an 18% YoY revenue gain to $1.66 billion. This represented 45.4% of all Flutter revenue generated during the opening three months of the year.
Fox retains equity option in FanDuel
While the Boyd deal paves the way for Flutter to take full ownership of FanDuel, it may still be forced to sell part of the business.
Fox Corporation has an option to acquire an 18.6% equity interest in FanDuel on or before 3 December 2030. This is under an agreement known as the ‘Fox Option’ struck in December 2020, determined as $20 billion plus an annual escalator of 5%.
Should Fox opt to purchase the holding, it would equate to an exercise price of $4.50 billion. This would need to be settled in cash and Fox would only be able to acquire the agreed holding in full. Fox would also need to become a licensed gambling operator before taking on the stake.
Reports emerged last year suggesting Fox was considering this option. According to Sportico, Fox CEO Lachlan Murdoch said the conglomerate would seek to acquire the stake at $2.20 billion, below market value.