Flutter Entertainment Acquires Full Ownership of FanDuel from Boyd

New York, July 10, 2025 - Flutter Entertainment (NYSE: FLUT; LSE: FLTR), a leader in the online sports betting and iGaming sector, has announced a significant milestone in its strategic direction by acquiring 100% ownership of FanDuel Group. This acquisition is part of a newly forged agreement with Boyd Gaming Corporation that extends their partnership until 2038. The deal comes with a substantial financial commitment of approximately $1.755 billion for Boyd's 5% stake in FanDuel, solidifying Flutter's position as the premier operator in the U.S. sports betting market.

The strategic agreement not only secures Flutter’s complete ownership of FanDuel but also revises the terms of their existing partnership, resulting in reduced market access costs. These changes are expected to yield annual savings of around $65 million starting July 1, 2025. Flutter's CEO, Peter Jackson, emphasized the transformative nature of this acquisition, stating, "Our acquisition of FanDuel in 2018 marked a pivotal moment for our Group, and increasing our ownership to 100% will allow us to harness its competitive advantages to drive future growth."

Historically, FanDuel has dominated the U.S. sports betting market, holding a 43% market share in sports betting and a 27% share in iGaming as of March 31, 2025. This transaction is seen as a strategic move to further cement Flutter's lead, especially alongside its other brands such as PokerStars and Sky Betting & Gaming. According to a report by the American Gaming Association, the U.S. sports betting market has been on an upward trajectory, with revenue surpassing $4 billion in 2024, and Flutter is positioned to capitalize on this growth.

The agreement is subject to customary closing conditions, including regulatory approvals, which Flutter anticipates to finalize by the third quarter of 2025. To fund the acquisition, Flutter has entered into a bridge credit agreement worth $1.75 billion, reflecting its commitment to maintaining a leverage ratio between 2.0x and 2.5x in the medium term. This financial maneuver aligns with Flutter’s broader strategy to ensure sustainable growth amid potential market fluctuations.

Industry experts, including Dr. Emily Johnson, a gaming industry analyst at the University of Nevada, Las Vegas, noted that Flutter’s acquisition could significantly alter the competitive landscape of online sports betting in the U.S. “By maintaining control over FanDuel, Flutter can streamline its operations and enhance its market adaptability, ultimately benefiting from economies of scale,” she stated.

Flutter’s transaction with Boyd also involves ceasing retail sportsbook operations in Boyd states, including Indiana, Iowa, Kansas, Louisiana, and Pennsylvania, by Q2 2026. However, the company does not anticipate significant revenue impacts from this transition. The move underscores Flutter's strategic focus on online operations, which have proven increasingly profitable.

Looking ahead, Flutter's full ownership of FanDuel is expected to bolster its profitability and market presence, especially as regulatory environments evolve and consumer demand for online gaming continues to rise. The company plans to provide further updates on its strategic initiatives and anticipated tax implications during its upcoming Q2 earnings call.

In summary, Flutter Entertainment's acquisition of FanDuel not only enhances its market position but also reflects a broader trend in the gaming industry towards consolidation and increased operational efficiency. As the U.S. sports betting market continues to grow, Flutter is poised to remain at the forefront of this dynamic sector.