Boyd Gaming agreed to sell its 5% equity interest in FanDuel Group to Flutter Entertainment for $1.755 billion in cash.
The transaction is expected to close in the third quarter of 2025, pending regulatory approvals. Boyd Gaming plans to use the net proceeds to reduce its debt.
In addition to the equity sale, Boyd and FanDuel will revise their market-access agreements. New agreements will extend the partnership through 2038 and provide Boyd with a fixed fee per state from FanDuel’s mobile sports betting operations in Iowa, Indiana, Kansas, Louisiana, and Pennsylvania, as well as their online casino operations in Pennsylvania, upon the deal’s close. FanDuel will also continue to operate Boyd’s retail sportsbooks outside of Nevada until mid-2026, after which Boyd will take over these operations.
Due to the revised agreements, Boyd now anticipates its Online segment will generate $50 million to $55 million in operating income and Adjusted EBITDAR for full-year 2025, and approximately $30 million in 2026.
Advisors: Moelis & Company served as exclusive financial advisor to Boyd Gaming on the transaction. Morrison & Foerster served as legal advisor to Boyd Gaming on the transaction, with Brownstein Hyatt Farber Schreck advising on the commercial agreements.
KEY QUOTES:
“This transaction unlocks the tremendous unrealized value that our investment in FanDuel has created for our Company. As a result, we are in a significantly stronger financial position to continue executing our strategy of investing in our properties, pursuing growth opportunities, returning capital to our shareholders, and maintaining a strong balance sheet.”
“The partnership between Boyd and FanDuel has been a remarkable success for both companies. FanDuel has emerged as the nation’s clear leader in online sports-betting, while Boyd has been able to leverage this partnership to profitably participate in the rapid growth of sports betting across the country. It has been a privilege to work with the Flutter and FanDuel teams, and we look forward to supporting FanDuel’s continued growth and success through our market-access agreements across the country.”
Keith Smith, President and Chief Executive Officer of Boyd
