Flutter Entertainment Boosts Stake in FanDuel to 100%

Flutter Entertainment Expands Stake in FanDuel

Flutter Entertainment, a leading name in the online sports betting and iGaming sector, has taken a significant step forward by securing 100% ownership of FanDuel. This milestone follows an agreement with Boyd Gaming Corporation, effectively marking a new phase in their long-standing partnership.

Details of the Agreement with Boyd Gaming

The recent agreement extends Flutter's strategic partnership with Boyd through 2038. As part of this deal, Flutter will acquire Boyd's 5% stake in FanDuel, which is valued at approximately $1.755 billion. This transaction consolidates Flutter’s control over the top sports betting and iGaming platform in the United States, pushing its overall valuation for FanDuel to about $31 billion.

Financial Advantages of Increased Ownership

One of the key objectives behind this acquisition is to secure better market access terms across states where Boyd currently facilitates FanDuel's operations. Flutter anticipates that this arrangement will generate substantial annual savings—estimated at $65 million—starting from July 1, 2025.

Strategic Objectives Achieved Through This Acquisition

• Complete Ownership of Market Leader: With the completion of this transaction, Flutter ensures full ownership of FanDuel, reinforcing its status as the leading entity in both sports betting, achieving a noteworthy 43% market share, and iGaming, with a 27% market share in the U.S.
• Cost Efficiency Enhancements: By refining market access costs, Flutter aims to enhance its adjusted EBITDA margin long-term, thereby strengthening its position against potential tax increases and operational costs in a competitive environment.

Future Growth Prospects

The completion of this acquisition is pending regulatory approvals, with expectations set for completion around Q3 2025. Flutter will finance the buyout through additional debt, which is projected to increase but will be managed in line with their medium-term leverage ratio goals, aiming for 2.0-2.5x.

Comments from Leadership

Peter Jackson, CEO of Flutter Entertainment, expressed enthusiasm regarding the acquisition, describing it as a transformative milestone that strengthens their position in the market. He highlighted the fruitful partnership with Boyd and the potential for greater shareholder value through increased ownership of FanDuel.

Implications for the Industry

Flutter's increased stake in FanDuel underscores the growing importance of strategic partnerships in the online gaming industry. By positioning itself as the sole owner of FanDuel, Flutter not only enhances its market presence but also sets a precedent for future collaborations in the evolving gaming landscape.

About Flutter Entertainment

Flutter stands out in the field of online sports betting and iGaming, operating a diverse portfolio that includes various prominent brands such as FanDuel, PokerStars, and Paddy Power. Flutter's commitment to innovation and sustainable practices plays a crucial role in its strategy to maintain and grow its market leadership position.

Frequently Asked Questions

What does the acquisition of FanDuel entail?

Flutter has agreed to purchase Boyd Gaming's 5% stake in FanDuel, bringing its total ownership to 100%. The deal enhances Flutter's market position significantly.

How much will Flutter pay for the acquisition?

Flutter is set to acquire Boyd's stake for approximately $1.755 billion.

What financial benefits does Flutter anticipate?

The acquisition is expected to yield annual savings of around $65 million, improving Flutter's overall profitability.

When is the completion of the acquisition expected?

The transaction is expected to close in the third quarter of 2025, pending regulatory approvals.

What is Flutter's vision for the future?

Flutter aims to leverage its increasing market share and operational efficiencies to enhance shareholder value and ensure sustainable growth moving forward.

About The Author

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