Gaming corporation, Boyd, to dispose of its share in FanDuel for a value of $1.755 billion.
Boyd Gaming Strengthens Financial Position with Flutter Entertainment Deal
In a significant move, Boyd Gaming has announced the sale of its 5% equity interest in FanDuel Group to Flutter Entertainment for $1.755 billion in cash. This transaction, expected to close in the third quarter of 2025, subject to regulatory approvals, is set to unlock significant value for Boyd Gaming.
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, and Boyd has profited from the partnership by participating in the rapid growth of sports betting across the country.
Under the new agreement, Boyd will take over operations of its retail sportsbooks outside of Nevada after mid-2026. Until then, FanDuel will continue to manage these operations. The deal also includes new market-access agreements, extending the partnership between Boyd and FanDuel through 2038.
Keith Smith, the President and Chief Executive Officer of Boyd Gaming, expressed his excitement about the continued growth and success of FanDuel. Boyd looks forward to supporting FanDuel's expansion across the country through these market-access agreements.
The transaction is expected to boost Boyd's financial position. Upon the deal's close, Boyd will receive a fixed fee per state from FanDuel's mobile sports betting operations in Iowa, Indiana, Kansas, Louisiana, and Pennsylvania, as well as their online casino operations in Pennsylvania.
With the influx of funds, Boyd Gaming plans to use the net proceeds to reduce its debt. The company also intends to invest in properties, pursue growth opportunities, return capital to shareholders, and maintain a strong balance sheet.
Boyd Gaming's Online segment is forecasted to generate $50 million to $55 million in operating income and Adjusted EBITDAR for full-year 2025. For full-year 2026, the company anticipates approximately $30 million in operating income and Adjusted EBITDAR.
Goldman Sachs, J.P. Morgan, and Moelis & Company acted as advisors for the transaction between Boyd Gaming and Flutter Entertainment. Moelis & Company served as exclusive financial advisor to Boyd Gaming on the transaction. Morrison & Foerster served as legal advisor to Boyd Gaming, with Brownstein Hyatt Farber Schreck advising on the commercial agreements.
The deal marks a new chapter for Boyd Gaming, positioning the company for continued growth and success in the rapidly evolving sports-betting industry.
