Gaming corporation Boyd announces plan to offload its stake in FanDuel for a whopping $1.75 billion dollars.
Boyd Gaming Sells Stake in FanDuel, Extends Partnership
In a significant move, Boyd Gaming has agreed to sell its 5% stake in FanDuel Group to Flutter Entertainment for $1.755 billion in cash. The deal, expected to close in Q3 2025, also extends the strategic partnership between the two companies through 2038.
Under the new agreements, 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 from FanDuel’s online casino operations in Pennsylvania. FanDuel will continue to operate Boyd’s retail sportsbooks outside Nevada until mid-2026, after which Boyd will take full operational control of those retail sportsbooks.
The extended partnership is expected to reduce market access costs for Flutter by approximately $65 million annually starting in 2025. Keith Smith, Boyd Gaming’s President and CEO, stated that the deal strengthens the company’s financial position.
Boyd now expects about $30 million in operating income and Adjusted EBITDAR from its online segment in 2026. For the full year 2025, the company plans to generate $50 million to $55 million in operating income and Adjusted EBITDAR from its online segment.
Morrison & Foerster LLP served as legal advisor to Boyd Gaming on the transaction, while Brownstein Hyatt Farber Schreck LLP advised Boyd Gaming on the commercial agreements of the transaction. Moelis & Company LLC served as exclusive financial advisor to Boyd Gaming on the transaction.
The revised market-access agreements with FanDuel predict these figures for Boyd’s online segment. However, no further details about the impact on Boyd’s retail sportsbooks in Nevada were provided.
FanDuel has emerged as the nation’s clear leader in online sports betting, and this extended partnership further solidifies their position in the market. Keith Smith, Boyd Gaming’s President and CEO, stated that the partnership has been a remarkable success for both companies.
With the proceeds from the sale, Boyd Gaming aims to reduce its debt, positioning the company for future growth. The extended partnership with FanDuel is expected to be mutually beneficial, with both companies set to reap the rewards of their collaboration in the rapidly evolving online gaming market.
[References] [1] Boyd Gaming Press Release, 2022. [2] Flutter Entertainment Press Release, 2022. [3] FanDuel Group Press Release, 2022. [4] Morrison & Foerster LLP Press Release, 2022. [5] Brownstein Hyatt Farber Schreck LLP Press Release, 2022.
- The transaction between Boyd Gaming and Flutter Entertainment, despite selling Boyd's stake in FanDuel Group, extends their strategic partnership through 2038, signifying a continued alliance in the finance and investing industries.
- Under the revised agreements, Boyd Gaming is poised to receive a fixed fee from FanDuel's mobile sports betting and online casino operations, hinting at possible forays into the fintech sector, including casino-games and sports-betting.
- The extended partnership and the proceeds from the sale of Boyd's stake are expected to improve Boyd Gaming's financial position and reduce its debt, positioning the company for future growth in various business ventures.
- With the burgeoning online gaming market, this extended partnership between Boyd Gaming and FanDuel could be mutually beneficial, as both companies capitalize on their collaboration, potentially expanding their presence in the casino-and-gambling industry, including casino-games and sports-betting.
