Flutter Entertainment reached an agreement with Boyd Gaming Corporation to purchase the remaining 5% of FanDuel for about $1.8 billion.
The deal will put Dublin-based Flutter back in full control of FanDuel, the leading sports betting provider in America. The $1.8 billion fee also gives FanDuel an estimated total valuation of $31 billion.
Boyd said the transaction provided it with “tremendous unrealized value” from its initial investment, which came in 2018. The deal is expected to close in the third quarter.
Full control restored
FanDuel CEO Peter Jackson confirmed the purchase in a press release.
“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.”
Flutter previously used Boyd to gain access to different state markets, specifically those that required online sportsbooks operators to be tethered to retail operators.
Part of the companies’ strategic partnership will see them remain connected as casino and sports betting operators, the release said.
“The agreements will also provide Boyd with a fixed fee per state from FanDuel's mobile sports-betting operations in Iowa, Indiana, Kansas, Louisiana, and Pennsylvania, as well as FanDuel's online casino operations in Pennsylvania, upon the close of this transaction. FanDuel will also continue to operate Boyd's retail sportsbooks outside of Nevada through mid-2026, after which time Boyd will assume responsibility for these operations.”
Boyd said the new market access deals, which will result in pay-per-state, will generate $50-55 million in operating income in 2025 and $30 million in 2026. Flutter said the new deals will help it save about $65 million annually.
FanDuel still growing
The $31 billion valuation is nearly 50% greater than that of its closest rival, DraftKings, which is valued at about $22.1 billion.
FanDuel maintains a 43% market share in the US sports betting industry. It and DraftKings have also recently strengthened their hold over competitors such as BetMGM and Caesars, although up-and-comers such as bet365 and Fanatics have emerged as budding rivals.
Boyd President and CEO Keith Smith touted his company's relationship with FanDuel.
“The partnership between Boyd and FanDuel has been a remarkable success for both companies. FanDuel has emerged as the nation’s clear leader in online sports betting, while Boyd has been able to leverage this partnership to profitably participate in the rapid growth of sports betting across the country.”
FanDuel is still looking to make deals. It was reported last month the company held exploratory talks with Kalshi – which is fighting numerous state regulators over its right to offer its services without state regulation – regarding a potential partnership with the prediction platform.
FanDuel also at the end of June unveiled its new Manhattan headquarters, featuring a special appearance from New York Sen. Joseph Addabbo Jr.