Flutter Entertainment PLC is buying back the last 5% of FanDuel it doesn't currently own from the holder of that sliver, brick-and-mortar casino operator Boyd Gaming Corp.
Key Takeaways
- Flutter Entertainment is buying the remaining 5% of FanDuel from Boyd Gaming for around $2 billion, aiming for full ownership of the leading U.S. online sportsbook.
- The deal implies a $35 billion valuation for FanDuel, underscoring its market dominance over rivals like DraftKings and highlighting Flutter's strategic focus on U.S. operations.
The news was first reported on X by Mark Kleinman, business editor at Sky News.
Las Vegas-based Boyd and Flutter then announced the news formally, with Boyd saying it entered into a "definitive agreement" to sell its 5% stake in FanDuel to Flutter for $1.755 billion in cash.
The transaction would give Flutter complete ownership of FanDuel, at least for the time being (more on that below).
Boyd added that the deal is expected to close in the third quarter of 2025, pending regulatory approvals. The casino operator said it plans to use the net proceeds of the transaction to reduce its debt.
"This transaction unlocks the tremendous unrealized value that our investment in FanDuel has created for our Company," said Keith Smith, president and chief executive officer of Boyd, in a press release. "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."
Exclusive: Flutter Entertainment, the group behind Paddy Power and Betfair, is in advanced talks to buy a further 5pc stake in FanDuel, the US-based sports betting company, from Boyd Gaming in a deal expected to be worth close to $2bn. An agreement could be announced this week.
— Mark Kleinman (@MarkKleinmanSky) July 10, 2025
The value of the 5% stake suggests that FanDuel, the biggest online sportsbook in the United States, could be worth around $35 billion. Flutter said the "attractive implied valuation" was around $31 billion.
Whatever the valuation, it's a good bit more than the current, approximately $22 billion market capitalization of FanDuel’s chief rival, DraftKings. That gap could, among other things, speak to the Flutter subsidiary's stronger position in the U.S. market.
"The partnership between Boyd and FanDuel has been a remarkable success for both companies," Smith said in the press release. "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."
Boyd got its 5% stake in FanDuel in 2018 as part of a partnership to pursue sports betting and iGaming opportunities in the U.S. Boyd also acts as a "market access" vehicle for FanDuel in certain states, such as Indiana, where online sports betting operators need ties to a brick-and-mortar facility.
As part of Thursday's announcement, Boyd said it and FanDuel would scrap their existing market-access deals and enter into new ones that run through 20238.
"The agreements will also provide Boyd with a fixed fee per state from FanDuel's mobile sports-betting operations in Iowa, Indiana, Kansas, Louisiana and Pennsylvania, as well as FanDuel's online casino operations in Pennsylvania, upon the close of this transaction," the press release added. "FanDuel will also continue to operate Boyd's retail sportsbooks outside of Nevada through mid-2026, after which time Boyd will assume responsibility for these operations."
Boyd said the new market-access agreements would mean that its online gambling segment will generate $50 million to $55 million in operating income and adjusted EBITDAR this year, and then approximately $30 million for 2026.
Fox in the FanDuel house
Flutter, meanwhile, trumpeted that Thursday's deal (paid for with additional debt) will give it 100% ownership of FanDuel, "the premier asset in the US sports betting and iGaming market."
Furthermore, Flutter said the new market-access deals would contribute annual operating cost savings of around $65 million.
"The savings are expected to be generated from July 1, 2025, and further underpin Flutter’s confidence in the long-term profitability profile of its US business, demonstrating the ability to help mitigate both recent and future tax increases," the company added.
Those "recent and future tax increases" include Illinois adding a per-bet tax for sportsbook operators and New Jersey upping its levy on online gambling revenue.
Still, with FanDuel's strong presence in the country, Flutter continues to lean into its U.S. operations. The company's “global operational headquarters” are in New York and its shares are now listed on the New York Stock Exchange.
“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 CEO Peter Jackson said in a press release. "I am really pleased to drive future value for our shareholders by increasing our ownership of FanDuel to 100%. Boyd have been fantastic partners for FanDuel, and we are delighted to be extending our important strategic partnership through to 2038."
Nevertheless, Flutter has another FanDuel ownership issue hanging over its head.
TV company Fox Corp. continues to hold an option to purchase 18.6% of FanDuel at a cost the two companies fought over. Following arbitration, the price of the 18.6% stake is now approximately $4.3 billion, and the option to buy expires in Dec. 2030.
