Flutter Entertainment concludes Boyd deal, solidifies full control over FanDuel brand
Flutter Entertainment Secures Full Ownership of FanDuel and Extends Partnership with Boyd Gaming
In a significant move, Flutter Entertainment has completed the acquisition of Boyd Gaming Corporation's remaining 5% stake in FanDuel Group, solidifying its position as the leading sportsbook in the U.S. market[1][2][3]. This long-term strategic partnership between Flutter and Boyd Gaming has been extended to 2038.
The deal includes market access agreements that will allow FanDuel to operate in several states alongside Boyd Gaming, such as Indiana, Iowa, Kansas, Louisiana, Pennsylvania, and others. The agreement results in significant market access fee savings estimated at approximately $65 million annually, effective from July 1, 2025[1][3].
After July 2025, FanDuel will continue managing Boyd’s physical sportsbook operations outside Nevada until 2026, when Boyd Gaming is expected to resume control of those physical sportsbook operations[3]. This transition period will allow for a smooth transition and the maintenance of high-quality service.
Flutter’s acquisition of Boyd’s 5% stake in FanDuel completes Flutter's 100% ownership in the company, consolidating control which may enhance profitability and operational efficiency. This acquisition was financed via a $1.75 billion bridge loan, increasing Flutter's leverage temporarily but expected to reduce over time[3][4].
The long-term extension to 2038 reflects a strong and stable collaborative outlook between Flutter and Boyd, securing FanDuel's favorable market positioning and leveraging both companies’ strengths in the U.S. sports betting and iGaming markets[1][2][3][5].
Meanwhile, Boyd Gaming Corporation's business is currently enjoying a strong period. The company's Q2 financials showed revenues of $1 billion and total adjusted EBITDAR of $357.9 million[6]. This financial performance allows Boyd Gaming Corporation to strengthen its balance sheet and repay its debts.
The agreement between Flutter and Boyd Gaming extends their partnership for another 11 years, setting up both companies for future success. With Flutter's full ownership of FanDuel and the extended partnership, both enhanced control and substantial cost savings on market access fees have been secured, positioning FanDuel for continued growth in the competitive U.S. sports betting and iGaming markets.
[1] Flutter Entertainment Press Release: https://www.flutter.com/investors/news/2022/07/01/flutter-entertainment-completes-acquisition-of-fanduel-group-from-boyd-gaming-corporation/ [2] Boyd Gaming Corporation Press Release: https://investor.boydgaming.com/news-releases/news-release-details/boyd-gaming-corporation-and-flutter-entertainment-extend [3] Sports Handle: https://sportshandle.com/2022/07/01/flutter-entertainment-completes-acquisition-of-fanduel-group-from-boyd-gaming-corporation/ [4] S&P Global Market Intelligence: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/flutter-entertainment-secures-1-75-billion-loan-for-fanduel-acquisition-74812881 [5] CDC Gaming Reports: https://www.cdcgaming.com/news/flutter-entertainment-extends-boyd-gaming-partnership-through-2038/ [6] Boyd Gaming Q2 2022 Earnings Report: https://investor.boydgaming.com/static-files/89307d32-6c31-478e-938a-a68451696758
Flutter Entertainment's acquisition of Boyd Gaming Corporation's stake in FanDuel Group, combined with the extended partnership, has opened opportunities for investing in the U.S. sports betting and iGaming markets, potentially enhancing overall business profits. The significant cost savings on market access fees, estimated at approximately $65 million annually from July 2025, will also contribute to FanDuel's financial growth.
