Stock Market Daily: Flutter-Boyd Sale of IGT, Genius Sports Involved
In a significant move, Flutter Entertainment has completed the acquisition of Boyd Gaming's 5% stake in FanDuel, the leading U.S. online sports betting and iGaming platform, for approximately $1.755 billion. With this deal, Flutter now holds 100% ownership of FanDuel, a company valued at around $31 billion.
The acquisition marks a strategic move for Flutter, eliminating minority ownership complexities and enhancing operational flexibility and control over FanDuel's business and strategy in the U.S. market. The deal is expected to close in the third quarter of 2025.
The transaction brings about several key impacts for both companies and the U.S. market.
Cost Savings and Profitability
Flutter expects to save around $65 million annually starting July 2025 by reducing market access fees in important states such as Iowa, Indiana, Kansas, Louisiana, and Pennsylvania. These savings stem from renegotiated commercial terms with Boyd Gaming, which will continue its strategic partnership with Flutter through 2038 at reduced costs.
Operational Streamlining
The removal of Boyd’s 5% stake clears minority ownership hurdles, allowing Flutter to fully leverage FanDuel’s dominant 43% market share in U.S. sports betting and iGaming. This positions Flutter more strongly against competitors and supports strategic growth.
Extension of Strategic Partnership
Despite exiting as an equity holder, the companies have extended their strategic alliance, which minimises disruption to FanDuel’s retail sportsbook operations and ensures continued collaboration across regulated markets.
Market Impact
Full control of FanDuel solidifies Flutter’s position as the top U.S. online sports betting operator, potentially reinforcing FanDuel’s market leadership and accelerating expansion amid a highly competitive and evolving regulatory environment.
Financial Strategy
The acquisition was funded through additional debt financing, temporarily increasing leverage but expected to reduce over time due to profitable growth opportunities. Flutter aims to maintain a medium-term leverage ratio between 2.0 and 2.5 times EBITDA.
Analysts, including David Katz of Jefferies and Barry Jonas of Truist Securities, have expressed positive views on the deal, viewing it as transformational for Flutter’s U.S. business and favourable for long-term profitability and competitiveness in regulated online gambling.
Meanwhile, Boyd Gaming, having sold its stake, plans to allocate the funds, including a $3 per share special dividend and a $500 million buyback program. The sale is seen as a positive move for Boyd Gaming shares due to the balanced risk/reward of the U.S. online sports betting business long-term.
Sources: [1] Rege Behe, "Flutter Entertainment to buy Boyd Gaming's 5% stake in FanDuel for $1.76 billion", The Philadelphia Inquirer, 2025. [2] David Katz, Jefferies Research Note, 2025. [3] Barry Jonas, Truist Securities Research Note, 2025. [4] Genius Sports Press Release, "Genius Sports Announces Expanded Rights Portfolio and Unified Platform Offerings", 2025. [5] IGT Press Release, "IGT Announces Sale of Lottery Division to Voyager Parent", 2025.
The acquisition of Boyd Gaming's stake in FanDuel marks a significant opportunity for sports-centric growth and profitability for Flutter Entertainment, as they aim to save approximately $65 million annually and consolidate their position as the leading U.S. online sports betting operator.
With the removal of minority ownership complexities, Flutter can better leverage FanDuel's dominant market share, positioning themselves more strongly against competitors and supporting strategic growth in the U.S. market.
