Flutter Entertainment PLC is redeeming the last 5% of FanDuel it does not currently own from the holder of that sliver, brick-and-mortar casino operator Boyd Gaming Corp.

- Flutter Entertainment is buying the remaining 5% of FanDuel from Boyd Gaming for around $2 billion, going for complete ownership of the leading U.S. online sportsbook.
- The offer implies a $35 billion evaluation for FanDuel, underscoring its market supremacy over rivals like DraftKings and highlighting Flutter's tactical focus on U.S. operations.

The news was initially reported on X by Mark Kleinman, company editor at Sky News.

Las Vegas-based Boyd and Flutter then announced the news formally, with Boyd stating it participated in a "definitive agreement" to sell its 5% stake in FanDuel to Flutter for $1.755 billion in money.

The deal would provide Flutter complete ownership of FanDuel, a minimum of for the time being (more on that below).

Boyd added that the deal is anticipated to close in the 3rd quarter of 2025, pending regulatory approvals. The casino operator stated it prepares to utilize the net profits of the transaction to lower its debt.

"This deal unlocks the significant unrealized value that our investment in FanDuel has actually created for our Company," said Keith Smith, president and chief executive officer of Boyd, in a news release. "As a result, we are in a significantly stronger financial position to continue executing our method of investing in our residential or commercial properties, pursuing development chances, returning capital to our investors, and maintaining a strong balance sheet."

Exclusive: Flutter Entertainment, the group behind Paddy Power and Betfair, is in innovative speak with purchase an additional 5pc stake in FanDuel, the US-based sports betting business, from Boyd Gaming in an offer anticipated to be worth near $2bn. An arrangement might be revealed today.

The value of the 5% stake suggests that FanDuel, the biggest online wagering websites in the United States, might be worth around $35 billion. Flutter stated the "appealing indicated assessment" was around $31 billion.

Whatever the assessment, it's a great bit more than the existing, approximately $22 billion market capitalization of FanDuel's chief rival, DraftKings. That space could, amongst other things, speak to the Flutter subsidiary's more powerful position in the U.S. market.

"The partnership in between Boyd and FanDuel has been an amazing success for both companies," Smith said in journalism release. "FanDuel has actually emerged as the nation's clear leader in online sports-betting, while Boyd has had the ability to take advantage of this partnership to profitably get involved in the fast growth of sports wagering across the nation."

Boyd got its 5% stake in FanDuel in 2018 as part of a partnership to pursue sports wagering and iGaming opportunities in the U.S. Boyd likewise serves as a "market gain access to" car for FanDuel in particular states, such as Indiana, where online sports betting operators require ties to a brick-and-mortar center.

As part of Thursday's statement, Boyd said it and FanDuel would scrap their existing market-access deals and participate in brand-new ones that run through 20238.

"The contracts will also offer Boyd with a fixed fee per state from FanDuel's mobile sports-betting operations in Iowa, Indiana, Kansas, Louisiana and Pennsylvania, in addition to FanDuel's online gambling establishment operations in Pennsylvania, upon the close of this deal," the press release added. "FanDuel will likewise continue to operate Boyd's retail sportsbooks outside of Nevada through mid-2026, after which time Boyd will assume obligation for these operations."

Boyd said the new market-access agreements would imply that its online betting sector will produce $50 million to $55 million in running earnings and adjusted EBITDAR this year, and after that approximately $30 million for 2026.

Fox in the FanDuel house

Flutter, on the other hand, trumpeted that Thursday's deal (spent for with extra financial obligation) will provide it 100% ownership of FanDuel, "the leading asset in the US sports wagering and iGaming market."

Furthermore, Flutter said the new market-access deals would contribute annual operating expense savings of around $65 million.

"The cost savings are anticipated to be generated from July 1, 2025, and even more underpin Flutter's self-confidence in the long-term profitability profile of its US company, demonstrating the ability to help reduce both recent and future tax increases," the company added.

Those "current and future tax boosts" include Illinois adding a per-bet tax for sportsbook operators and New Jersey upping its levy on online betting income.

Still, with FanDuel's strong presence in the nation, Flutter continues to lean into its U.S. operations. The company's "worldwide functional head office" are in New york city and its shares are now noted on the New York Stock Exchange.

"Our acquisition of FanDuel in 2018 is among the most transformational events in our Group's history, with its natural competitive benefits combined with access to Flutter Edge abilities driving remarkable development to end up being the well-established and clear leader in US online sports betting and iGaming," Flutter CEO Peter Jackson stated in a news release. "I am really happy to drive future worth for our investors by increasing our ownership of FanDuel to 100%. Boyd have been great partners for FanDuel, and we are pleased to be extending our crucial strategic collaboration through to 2038."

Nevertheless, Flutter has another FanDuel ownership problem hanging over its head.

TV company Fox Corp. continues to hold an alternative to purchase 18.6% of FanDuel at an expense the two companies contested. Following arbitration, the rate of the 18.6% stake is now around $4.3 billion, and the alternative to buy expires in Dec.