Flutter grows stake in FanDuel to 100% under new agreement with Boyd

• Flutter Entertainment and Boyd Gaming reached an agreement under which the former would acquire the latter's 5% stake in FanDuel
• The price tag of the takeover, subject to relevant closing conditions and regulatory approvals, is an estimated $1.755bn
• Peter Jackson, Flutter Entertainment's CEO, highlights the importance of the takeover and extended agreement with Boyd Gaming

The leading gaming and betting operator, Flutter Entertainment, announced it had extended its existing long-term deal with Boyd Gaming Corporation.

At the same time, the former confirmed the buyout of Boyd Gaming's stake in FanDuel in an acquisition with a price tag close to $2bn.

The buyout has a price tag of $1.755bn

On Thursday, Flutter confirmed it agreed to pay Boyd Gaming a sum of approximately $1.755bn to acquire its 5% stake in FanDuel.

Upon completion of the strategic acquisition, Flutter would have 100% ownership in the leading betting and iGaming business.

Just like other acquisitions of a similar scale, the buyout is subject to customary closing conditions and relevant regulatory approvals.

According to Flutter, the completion of the transaction is expected at some point in Q3 this year.

The funding of the acquisition would be completed via additional debt financing, Flutter said.

A breakdown provided by the company reveals it anticipates paying approximately $1.55bn to Boyd Gaming for its 5% stake in FanDuel.

The payment of another $205m would be subject to the "revision of various existing commercial terms," as explained in a press release.

Such terms include reduced future market access costs for FanDuel, which are expected to be in the realm of $65m for Flutter.

Increasing its ownership in FanDuel drives further value for Flutter shareholders

Peter Jackson, Flutter Entertainment's CEO, commented: "Our acquisition of FanDuel in 2018 is one of the most transformational events in our Group’s history, with its natural competitive advantages combined with access to Flutter Edge capabilities driving impressive growth to become the well-established and clear leader in US online sports betting and iGaming."

Finally, the executive pointed out: "I am really pleased to drive future value for our shareholders by increasing our ownership of FanDuel to 100%. Boyd have been fantastic partners for FanDuel, and we are delighted to be extending our important strategic partnership through to 2038."

Gaining 100% ownership of FanDuel would mark an important achievement for Flutter in the context of the former's leadership in the US sports betting and iGaming vertical.

Currently, FanDuel is recognized as the top betting operator in the country holding approximately 43% market share.

Equally as important, the operator has a solid presence in the US online gambling industry with approximately 27% share.

It's worth noting that while Flutter will gain a 100% stake in FanDuel, Fox Corporation has the option to acquire up to 18.6% equity interest in FanDuel.

Fox can exercise this right on or before December 3, 2030.

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