north america/BUSINESS AND FINANCE

Flutter has acquired full ownership of FanDuel by reaching a new agreement with Boyd.

Flutter Entertainment has agreed to purchase Boyd Gaming's 5% stake in FanDuel. The estimated cost of the acquisition, pending necessary closing conditions and regulatory approvals, is approximately $1.755 billion.

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Summary

  • Flutter Entertainment has agreed to purchase Boyd Gaming's 5% stake in FanDuel.
  • The estimated cost of the acquisition, pending necessary closing conditions and regulatory approvals, is approximately $1.755 billion.
  • Peter Jackson, the CEO of Flutter Entertainment, emphasizes the significance of the acquisition and the extended partnership with Boyd Gaming.
Flutter Entertainment, a premier gaming and betting operator, announced the extension of its long-term agreement with Boyd Gaming Corporation. Additionally, Flutter revealed it had acquired Boyd Gaming's stake in FanDuel for nearly $2 billion.

The buyout has a price tag of $1.755bn

On Thursday, Flutter announced it has agreed to pay Boyd Gaming about $1.755 billion to acquire its 5% stake in FanDuel. Once this strategic acquisition is finalized, Flutter will have full ownership of the leading betting and iGaming company. Similar to other large-scale acquisitions, this buyout is subject to standard closing conditions and necessary regulatory approvals. Flutter anticipates completing the transaction sometime in the third quarter of this year. The company plans to finance the purchase with additional debt. Flutter detailed that it expects to pay around $1.55 billion to Boyd Gaming for its stake in FanDuel. An extra payment of $205 million will depend on the revision of various existing commercial terms, which, according to a press release, includes reduced future market access costs for FanDuel, estimated to be around $65 million for Flutter.

Increasing its ownership in FanDuel drives further value for Flutter shareholders

Peter Jackson, the CEO of Flutter Entertainment, remarked, Our acquisition of FanDuel in 2018 stands as one of the most transformative events in our Group’s history. The combination of its inherent competitive advantages and the use of Flutter Edge capabilities has propelled us to impressive growth, establishing FanDuel as the clear leader in the US online sports betting and iGaming market. Jackson further noted, I am thrilled to enhance shareholder value by increasing our ownership of FanDuel to 100%. Boyd has been an outstanding partner for FanDuel, and we are pleased to extend our vital strategic partnership until 2038. Obtaining full ownership of FanDuel signifies a significant milestone for Flutter, solidifying its leadership in the US sports betting and iGaming sectors. Currently, FanDuel is recognized as the leading betting operator in the country, holding approximately 43% of the market share. Notably, it also maintains a strong presence in the US online gambling industry with around 27% market share. It is important to note that while Flutter will acquire a complete stake in FanDuel, Fox Corporation retains the option to acquire up to an 18.6% equity interest in FanDuel, which they can exercise by December 3, 2030.

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