Flutter Entertainment, a leading iGaming and sports betting operator, has just announced the buyout of Boyd Gaming for its FanDuel stake, leading to full ownership of the FanDuel brand. Flutter will still partner with Boyd Gaming Corporation but will pay more than $1.7 billion to acquire FanDuel from Boyd Gaming.

Flutter Entertainment, the world's leading online sports betting and iGaming operator, has announced a major milestone: full ownership of FanDuel Group. Through a new strategic agreement with Boyd Gaming Corporation, Flutter will acquire Boyd's remaining 5% stake in FanDuel for over $1.755 billion, cementing its position as the sole owner of the US market-leading sports betting and iGaming platform.

Deal expands strategic partnership and secures market leadership

The landmark transaction also extends Flutter’s partnership with Boyd Gaming through 2038. FanDuel, which currently holds an industry-leading 43% share in US online sports betting and 27% in iGaming, will benefit from streamlined operations and reduced market access costs in five key states where Boyd provides entry: Iowa, Indiana, Kansas, Pennsylvania, and Louisiana.

The deal includes $1.55 billion attributed to the equity acquisition and $205 million tied to the revision of commercial terms, including the cease of FanDuel's retail sportsbook operations in Boyd properties by the second quarter of 2026. These changes are expected to generate annual cost savings of approximately $65 million for Flutter beginning July 1, 2025.

This transaction secures 100% ownership of the premier asset in the US market, said Flutter CEO Peter Jackson. FanDuel's scale and market dominance - driven by the 'Flutter Edge' - puts us in a strong position for sustained growth. Boyd has been a valued partner, and we're pleased to extend our strategic collaboration well into the future, he added.

Improved financial efficiency and EBITDA margins

The revised commercial terms are set to improve long-term adjusted EBITDA margins by lowering ongoing market access costs. This is particularly important as the sports betting industry faces growing pressure from state-level tax increases. The updated agreement allows Flutter to operate more efficiently, strengthening the profitability of its US operations.

Additionally, the buyout places FanDuel at an implied valuation of approximately $31 billion, demonstrating its critical value to Flutter's North American strategy. While the deal will temporarily raise Flutter's leverage ratio, the company remains committed to maintaining a medium-term leverage target.

Despite Flutter's acquisition of full ownership, Fox Corporation retains an option to acquire an 18.6% equity stake in FanDuel. The option, valid until December 3, 2030, is priced based on a $20 billion valuation from 2020, adjusted annually by 5%, making the current exercise price approximately $4.5 billion. However, the option can only be executed in full and requires Fox to secure appropriate licensing.

Bridge credit agreement secures funding

To finance the acquisition, Flutter has entered into a $1.75 billion Bridge Credit Agreement with a consortium of banks. The senior secured first lien term loan will mature 12 months after its first use, with two six-month extension options.

The funds will be used to pay the acquisition costs, associated fees, and other general corporate purposes. The loan terms mirror those of Flutter's existing credit agreements established with J.P. Morgan SE and others in November 2023.

A transformative deal in Flutter's history

Flutter's initial acquisition of FanDuel in 2018 was seen as a bold move, and today's deal confirms its long-term vision. This is one of the most transformational events in our Group's history, said Jackson. "FanDuel's growth and leadership position have exceeded expectations, and full ownership unlocks even more potential for the future."

With completion expected in Q3 2025 pending regulatory approvals, the agreement marks a pivotal point in Flutter's US expansion and its ambition to dominate the sports betting and iGaming space.