Flutter Acquires Remaining Boyd Gaming Stake in FanDuel for $1.76 Billion

Flutter Entertainment has agreed to acquire the remaining 5% stake in FanDuel from Boyd Gaming Corporation for $1.76 billion, thereby gaining full ownership of the US sports betting and iGaming operator. The transaction, which implies a valuation of $31 billion for FanDuel, is expected to be completed sometime in the third quarter of the year, subject to regulatory approval.

Flutter will fund the purchase with $1.75 billion in senior secured bridge loan facilities, which a group of banks agreed to. Flutter explained that short-term leveraging rises, while the same medium-term net debt to EBITDA ratio stays 2.0–2.5 times.

Boyd, who first approached FanDuel about a deal in 2018 when PASPA was overturned, will use the sale proceeds to repay debt. Per Boyd CEO Keith Smith, the sale “unlocks the tremendous unrealized value that our investment in FanDuel has created for our company.”

As a condition of the deal, Flutter and Boyd have extended their existing strategic relationship through 2038 and restructured commercial terms, which have reduced FanDuel's access prices in the major states. Those restructures are projected to yield about $65 million per year in cost savings as of the beginning of the previous month.

Flutter says FanDuel now controls 43% of the US online sportsbook market and 27% of the real-money online casino segment.

In addition, the companies have replaced the legacy joint venture structure with fixed-fee models in select states and agreed to have Boyd assume the latter's retail sportsbook business outside Nevada following the second half of 2026. 

Boyd predicts that the new joint venture will generate an online segment operating income of $50–$55 million in 2025.

FanDuel propels strong Q1 performance

Flutter reported healthy revenue figures for the first quarter in May, led nearly entirely by the U.S. business. Revenue was a record 8% year-on-year up at $3.7 billion, with sportsbook revenue through the FanDuel sportsbook segment contributing more than $1.1 billion, a 15% year-on-year rise. U.S. iGaming revenue climbed consistently by 32% to a total of $472m.

The business likewise recorded net earnings of $335 million, a significant swing from a net deficit of $177 million in Q1 2024. Adjusted EBITDA improved 20% year over year to a record 616 million, reflecting better margins and operational fulfillment through core markets. Average monthly players at FanDuel improved 11% while crossing over 4.3 million active players.

Revenue was almost $1.7 billion in the US, an 18% year-over-year rise, despite what the Company called "adverse" March Madness holiday festivities. U.S. adjusted EBITDA, however, jumped 519% to a record 161 million, a benefit of FanDuel's expanded scale and lower costs.