Flutter Entertainment completed its purchase of Boyd Gaming Corporation’s remaining 5% stake in FanDuel on Wednesday. The transaction gives Flutter complete current ownership of the US sports betting platform.
Boyd Gaming had maintained the minority stake since the companies first partnered to launch FanDuel operations. The casino operator provided market access in several states where it held gaming licenses.
Fox Corporation retains a separate option to acquire 18.6% of FanDuel before December 2030. The media company can exercise this right for an estimated $4.5 billion if it meets licensing requirements.
Flutter and Fox previously collaborated on the Fox Bet brand before that platform was discontinued.
The deal eliminates market access fees Flutter pays to Boyd in multiple jurisdictions. These states include Iowa, Indiana, Kansas, Louisiana and Pennsylvania, where Boyd facilitates FanDuel’s operations.
Flutter projects annual savings of approximately $65 million starting in July 2025. The cost reductions stem from no longer paying Boyd for market access services in these states.
The transaction also extends the operational partnership between both companies through 2038. This extension provides longer-term stability for FanDuel’s retail operations at Boyd properties.
The purchase values FanDuel at $31 billion based on the 5% stake price.
Flutter paid approximately $1.755 billion for Boyd’s 5% ownership stake. The deal was structured as a cash transaction completed on July 31st.
The partnership extension covers Boyd’s retail sportsbook operations outside Nevada. FanDuel will continue operating these locations through the first half of 2026.
After mid-2026, Boyd assumes direct control of its retail sportsbooks. During the transition period, Boyd receives fixed per-state fees from FanDuel’s online operations in the relevant jurisdictions.
The agreement maintains Boyd’s casino operations while ending its direct sports betting partnership.
Flutter now holds 100% of FanDuel’s current equity after eliminating Boyd’s minority position. The company faces potential future dilution only through Fox’s option agreement.
Fox’s option carries an exercise price based on FanDuel’s December 2020 valuation of $20 billion. The price increases by 5% annually and currently stands at roughly $4.5 billion.
The option requires Fox to pay the full amount in cash and obtain appropriate gaming licenses. These conditions protect Flutter from automatic dilution while preserving Fox as a potential strategic partner.
The high exercise price reflects FanDuel’s significant growth since the original option agreement was established. Fox must decide whether the investment justifies the substantial cash requirement by December 2030.
In June 2025, Flutter announced it would make around 220 UK and Ireland employees redundant, as the operator shifts its focus to US operations. Flutter has claimed that the reason behind the cuts was due to increasing costs.
