Flutter has announced it has secured a deal with Boyd Gaming to secure 100% ownership of FanDuel, buying out Boyd’s 5% stake.
The self-described “world’s leading online sports betting and iGaming operator” shared the announcement in a press release, confirming that it had reached an agreement to buy Boyd’s 5% stake in FanDuel for $1.755 billion.
Flutter notes that the agreement “also provides for the extension of the strategic partnership between FanDuel and Boyd at significantly reduced market access costs in the states where FanDuel’s market access is provided by Boyd.”
The fee agreed comprises $1.55 billion for Boyd’s 5% stake and an additional $200 million for revising the commercial terms of the partnership between Flutter and Boyd.
Through this agreement, Boyd will receive fixed fees from FanDuel’s mobile operations in Iowa, Indiana, Kansas, Louisiana, and Pennsylvania.
The price of $1.55 billion for Boyd’s 5% stake puts the overall valuation of FanDuel at $31 billion.
FanDuel Transformational for Flutter
Commenting on the agreement, Flutter CEO Peter Jackson stated, “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.
“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.”
Following the PASPA ruling in 2018, Flutter anticipated the growth of US sports betting and paid $158 million to acquire 57.8% of FanDuel. The deal also saw Flutter contribute its US assets at the time and agree a market access deal with Boyd.
In 2020, the Irish-based betting and gaming company took its controlling stake up to 95% with a $4.2 billion deal to buy out Fastball’s 37.2% stake in FanDuel.
Fox Maintains Option to Acquire Stake in FanDuel
Despite now controlling 100% of the company, Fox maintains an option to acquire 18.6% of FanDuel before December 2030.
If Fox wishes to exercise the option, it will pay the market value of FanDuel on December 3, 2020, plus an annual increase of 5%. In December 2020, FanDuel was valued at $20 billion, which would put the current exercise price, including the 5% annual increase, at $4.5 billion.
The price paid by Flutter for Boyd’s 5% stake would put the value of 18.6% at $6.32 billion, significantly higher than the $4.5 billion Fox would have to pay.
Commenting last year on whether the company is likely to exercise the option, Fox CEO Lachlan Murdoch said, “We’re not going to leave $2 billion on the table. We think that the option will grow with value over the next six years.”
At that time, FanDuel was valued at $35 billion by Goldman Sachs, and the option would have cost Fox $4.2 billion. If Fox wishes to exercise the option, it will have to acquire a gambling license. Alternatively, the two companies may come to an agreement for Flutter to buy out Fox’s option.
FanDuel Looks To Remain Market Leader
FanDuel was the leading sportsbook in the US in Q1 this year, with $1.67 billion in revenue generated. This marked a 19% increase from Q1 in 2024, and makes up 48% of the net revenue generated by licensed sportsbooks.
However, overall revenue for Flutter was $3.67 billion, lower than Wall Street’s expectations of $3.84 billion. As a result, the company lowered its full-year U.S. target, but estimates suggest the company will outperform predictions for Q2.
BTIG projects revenue of $1.724 billion and EBITDA of $298 million for FanDuel this quarter, up from previous expectations of $1.648 billion and $267 million, respectively. Flutter’s Q2 2025 earnings are scheduled for release on August 6.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
