Flutter acquires complete control over FanDuel for $1.76 billion in the Boyd buyout deal
In a significant move, Flutter Entertainment has completed the acquisition of Boyd Gaming's 5% share in FanDuel, marking another milestone in FanDuel's growth and valuation. The deal, valued at approximately $1.755 billion, positions FanDuel as a clear market leader in online sports betting in the U.S.
The transaction not only consolidates Flutter's ownership of FanDuel but also extends the strategic partnership between Flutter and Boyd Gaming through 2038. This extended partnership is expected to deliver $50 million to $55 million in operating income and Adjusted EBITDAR for 2025, indicating robust profitability.
The sale of Boyd Gaming's stake represents a peak in value for its small but lucrative slice of the company, given current market conditions. Boyd Gaming received a hefty return from the sale, amounting to nearly $2 billion.
FanDuel's total valuation now stands at around $31 billion, a significant contrast to the $158 million that Paddy Power Betfair originally paid for the entire company. This indicates FanDuel's significant growth, with Boyd selling its stake for over ten times the original price.
The potential cost of Fox's future buy-in remains uncertain but is expected to rise as FanDuel's value continues to climb. However, the Fox Bet joint venture between Fox Sports and Flutter has been shut down.
FanDuel remains a core focus for Flutter Entertainment. The company's strong market performance and growth prospects, coupled with increasing digital sports engagement, position FanDuel advantageously for further monetization growth. The FanDuel Sports Network, capitalizing on growing digital live sports viewership, is projected to increase over 14% in 2025.
From a credit perspective, Fitch Ratings views Flutter's acquisition of the remaining FanDuel stake as credit neutral, despite a temporary rise in EBITDAR leverage to 3.8x in 2025. With expectations for leverage to normalize thereafter, the acquisition aligns with a stable financial outlook while facilitating continued expansion.
In summary, post-acquisition, FanDuel remains a dominant and profitable player in the U.S. sports betting and online casino market, supported by strategic partnerships and benefiting from increasing digital sports engagement. Flutter's full ownership aligns with a stable financial outlook while facilitating continued expansion. Flutter Entertainment is scheduled to release its Q2 2025 financial results next week.
Technology plays a crucial role in FanDuel's success, as it leverages technology to deliver an immersive sports betting experience. The growing digital sports engagement further boosts FanDuel's market position in sports betting, thanks to technological advancements.
FanDuel's future growth prospects extend beyond sports betting, with the anticipated development of the FanDuel Sports Network, leveraging technology to capitalize on growing digital live sports viewership.
