Flutter Buying Boyd FanDuel Stake Valuing Sportsbook at $31B

Posted on: July 10, 2025, 04:46h. 

Last updated on: July 10, 2025, 04:46h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Flutter Entertainment to buy Boyd Gaming’s 5% FanDuel stake for $1.75 billion
  • That implies FanDuel is worth $31 billion
  • The price tag is about 25% of Boyd’s current market cap

Shares of Boyd Gaming (NYSE: BYD) closed higher by 1.50% and continued upward in Thursday’s after-hours session on news regional casino is selling its 5% interest in FanDuel to Flutter Entertainment (NYSE: FLUT) for $1.755 billion.

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The FanDuel Sportsbook logo. Parent company Flutter is paying $1.75 billion to Boyd Gaming for 5% of the sportsbook operator. (Image: FanDuel Sportsbook)

Flutter will now control 100% of FanDuel, which is the largest online sportsbook operator in the US and one of the biggest names in the iGaming industry. The relationship between the two gaming companies dates back to August 2018 when they reached a strategic agreement that paved the way for Flutter to leverage FanDuel for entry into the US sports wagering market. As part of that accord, Boyd gained an equity stake in FanDuel.

Flutter said the deal, which is expected to close in the current quarter, implies FanDuel’s valuation is $31 billion and it will realize annual cost savings of $65 million by way of “significantly reduced market access costs in the states where FanDuel’s market access is provided by Boyd.” In Nevada, Boyd’s sports betting platform is Boyd Sports, but it partners with FanDuel in other states in which it has land-based casinos and sports wagering licenses. In the middle of 2026, Boyd will take over operations of its retail sportsbooks outside of Nevada.

Under terms of the revised market-access agreements with FanDuel, the Company now expects its Online segment will generate $50 million to $55 million in operating income and adjusted earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) for the full year 2025, and approximately $30 million in 2026,” according to a statement issued by Boyd.

The Las Vegas-based company said it intends to use proceeds from the transaction to reduce debt. The Boyd/Flutter relationship has been extended through 2038.

FanDuel Valuation Dominates Other Sports Betting Stocks

With a market capitalization of $50.48 billion at today’s close, Flutter is already the world’s largest publicly traded gaming company and by a comfortable margin at that.

However, the $31 billion implied valuation for FanDuel implies Flutter shares may be undervalued. If nothing, it confirms FanDuel is worth significantly more than rivals. For example, the combined market value of DraftKings (NASDAQ: DKNG) and Rush Street Interactive (NYSE: RSI) — two pure-play iGaming/sports betting stocks — is about $25 billion.

Four years ago, there were rumors about Flutter potentially spinning off FanDuel to create value for shareholders. Given the price tag Boyd is commanding in the aforementioned transaction, it’s possible some investors will want to revisit the issue of separating the US business from Flutter, but the company did not mention that possibility.

Flutter did confirm that reach an agreement with select creditors for a senior secured first lien term loan worth $1.75 billion to finance the purchase of the FanDuel stake from Boyd. That credit facility matures 12 months after it’s initially used “with two additional six-month extension options.”

Fox May Have Overstated Value of FanDuel Stake

Boyd is a clear winner in the deal, commanding a price tag that’s roughly equivalent to 25% of its market value while gaining capital to firm its balance sheet. It also gains long-term stability in the FanDuel relationship, but there may be a “loser” in the scenario.

Media giant Fox Corporation (NASDAQ: FOX), which has an option to acquire 18.6% of FanDuel, earlier this year valued FanDuel at $35 billion, meaning 18.6% is worth $6.5 billion. Flutter said in the statement that the sportsbook is worth $31 billion and 18.6% of that amount is $5.76 billion.

The media company is working through the licensing process in the states in which FanDuel books bets in an effort to potentially exercise its option in the future. Fox also holds an equity stake in Flutter, which is appreciating because the gaming stock is up 46.66% over the past year.