Flutter Entertainment (NYSE: FLUT; LSE: FLTR) has taken a major step by securing 100% ownership of FanDuel Group through an agreement with Boyd Gaming Corporation. The deal involves Flutter paying Boyd approximately $1.755 billion to acquire Boyd's 5% stake in FanDuel, bringing Flutter's holding in the sports betting and iGaming business to 100% at an implied valuation of approximately $31 billion.
This move is expected to result in annual savings of approximately $65 million for Flutter beginning July 1, 2025, primarily driven by more attractive market access terms in states where FanDuel's market access is provided by Boyd. The transaction is anticipated to contribute to long-term adjusted EBITDA margin, demonstrating Flutter's ability to help mitigate both recent and future tax increases.
Flutter's revenue for fiscal 2024 stood at $14,048 million, marking a 19% year-over-year increase, while the revenue for the quarter ended March 31, 2025, was $3,665 million.
The company has also entered into a definitive bridge credit agreement with certain banks to obtain binding commitments in respect of a senior secured first lien term loan comprising an aggregate principal of US$1.75 billion. The facility is set to mature 12 months after first utilization, with two additional six-month extension options, and will bear interest at a per annum rate equal to term SOFR plus an applicable margin equal to 1.25%.
Peter Jackson, CEO of Flutter, expressed satisfaction with the acquisition of FanDuel in 2018, deeming it one of the most transformational events in the group's history. He noted that the natural competitive advantages combined with access to Flutter's capabilities have propelled FanDuel to become the clear leader in the US online sports betting and iGaming market.
Today the company's shares have moved 0.27% to a price of $290.37. For more information, read the company's full 8-K submission here.
