Gaming company Boyd finalizes the transfer of its interest in FanDuel sportsbook operation.
In a significant move, Flutter Entertainment has purchased Boyd Gaming's full 5% stake in FanDuel for approximately $1.755 billion. The deal, which includes $1.55 billion for the equity stake and an additional $205 million for revising existing commercial terms between the companies, was successfully completed on Thursday.
With this acquisition, Flutter Entertainment has grown its stake in FanDuel to 100%, solidifying its position as the sole owner of the popular sports betting and fantasy platform.
Boyd Gaming, on the other hand, plans to use the proceeds from the sale primarily to reduce its overall debt. The company's CEO, Keith Smith, stated that the transaction unlocks significant value and places Boyd in a stronger position to invest in its properties, pursue growth opportunities, return capital to shareholders, and maintain a robust balance sheet.
As part of the deal, Flutter and Boyd Gaming have extended their strategic partnership to 2038. Boyd will continue to provide market access in certain states under improved terms, expected to save Flutter roughly $65 million annually in operating costs starting July 2025.
Interestingly, Fox Corporation has the option to buy up to 18.6% equity interest in FanDuel. Fox can exercise this right on or before December 3, 2030.
Meanwhile, Boyd Gaming remains dedicated to its strategy of property investment and will continue to pursue new growth opportunities.
In a separate development, FanDuel announced a surcharge for bettors in Illinois this summer. The $0.50 surcharge will be applicable to every wager placed by bettors in Illinois, effective from September 1, 2025.
The extended strategic partnership between Flutter Entertainment and Boyd Gaming Corporation will be in effect until 2038, providing a stable foundation for both companies to grow and thrive in the competitive sports betting market.
- The financial proceeds from Boyd Gaming's sale of its FanDuel stake to Flutter Entertainment will be utilized primarily to reduce the debt in Boyd's finance sector, according to the company's CEO, Keith Smith.
- With the extended strategic partnership between Flutter Entertainment and Boyd Gaming Corporation lasting until 2038, it is clear that technology plays a critical role in their joint venture, as they aim to enhance their positions in the competitive sports betting, finance, and business market.
