Boyd Gaming Corporation (NYSE:BYD) has agreed to divest its 5% stake in FanDuel Group to Flutter Entertainment plc (NYSE:FLUT) for $1.755 billion in cash.
The deal is expected to be finalized in the third quarter of 2025, pending regulatory green lights.
Boyd said it will channel the funds into lowering its debt burden and fortifying its balance sheet.
As of March 31, 2025, Boyd Gaming had cash on hand of $311.5 million, and total debt of $3.5 billion.
The Las Vegas-based casino operator also announced a refresh of its partnership with FanDuel, which includes new terms to extend market access agreements through 2038 in several states.
These new arrangements will result in fixed annual fees for Boyd in places where FanDuel operates under its market licenses.
Under terms of the revised market-access agreements with FanDuel, the company expects its online division to rake in $50 million to $55 million in operating income and Adjusted EBITDAR in 2025, tapering to about $30 million in 2026.
Keith Smith, President and CEO of Boyd, called the move a realization of the "unlocked value" generated by the FanDuel partnership. “This strengthens our financial position to continue reinvesting in our core business and reward shareholders,” Smith noted.
Flutter Entertainment, which already held a 95% stake in FanDuel, will now take full ownership. This transaction values FanDuel at approximately $31 billion.
Flutter anticipates the new deal will reduce annual market-access costs by roughly $65 million beginning July 2025. As of March 31, Flutter Entertainment had cash and cash equivalents worth $1.537 billion.
It also deepens the ongoing relationship between Flutter and Boyd while simplifying ownership of one of the U.S.’s top sports betting platforms.
Flutter CEO Peter Jackson described the 2018 FanDuel acquisition as transformative and emphasized the benefits of consolidating ownership. "FanDuel's leadership in U.S. sports betting has been pivotal, and we're excited to take full control while continuing our long-term alliance with Boyd," Jackson stated.
Flutter has secured a $1.75 billion bridge credit facility to finance the transaction. The agreement, which includes first lien term loans, features flexible maturity and interest terms to accommodate the acquisition and related expenses.
Following the transaction, FanDuel will continue managing Boyd's retail sportsbooks outside Nevada through mid-2026, after which Boyd will take over those operations directly.
Price Action: BYD shares are trading lower by 1.73% to $83.89 premarket at last check Friday, FLUT shares are trading lower by 0.06% to $289.41.
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