Flutter to continue partnership with Boyd following 100 per cent FanDuel takeover
Having taken full control of FanDuel, Flutter Entertainment says it will ‘drive future value’ for its shareholders with a deal in place to continue its partnership with Boyd at ‘significantly reduced market access costs.’
Under the terms of the agreement, Flutter will pay Boyd approximately $1.755bn to acquire Boyd’s fice per cent stake in FanDuel and to revise various existing commercial terms, taking Flutter’s holding in the #1 sports betting and iGaming business in the US to 100 per cent at an attractive implied valuation of approximately $31bn. The agreement also provides for the extension of the strategic partnership between FanDuel and Boyd at significantly reduced market access costs in the states where FanDuel’s market access is provided by Boyd. This is expected to contribute to annual savings for Flutter of approximately $65m beginning July 1, 2025.
This transaction secures 100 per cent ownership of FanDuel, the premier asset in the US sports betting and iGaming market. FanDuel is the clear number one in the market with a 43 per cent market share in sports betting and 27 per cent in iGaming, driven by key sustainable competitive advantages, including access to the ‘Flutter Edge’.
This transaction delivers more attractive market access terms in states where FanDuel’s market access is provided by Boyd and is expected to contribute annual operating cost savings of approximately $65m. The savings are expected to be generated from July 1, 2025, and further underpin Flutter’s confidence in the long-term profitability profile of its US business, demonstrating the ability to help mitigate both recent and future tax increases.
Peter Jackson, CEO, commented: “Our acquisition of FanDuel in 2018 is one of the most transformational events in our Group’s history, with its natural competitive advantages combined with access to Flutter Edge capabilities driving impressive growth to become the well-established and clear leader in US online sports betting and iGaming. I am really pleased to drive future value for our shareholders by increasing our ownership of FanDuel to 100 per cent. Boyd have been fantastic partners for FanDuel, and we are delighted to be extending our important strategic partnership through to 2038.”
