Flutter Entertainment Secures Full Control of FanDuel Group
Flutter Entertainment is set to enhance its dominance in the U.S. online betting market by fully acquiring FanDuel Group. The acquisition includes Boyd Gaming’s 5% stake in FanDuel, with Flutter agreeing to a purchase price of approximately $1.76 billion.
Currently, Flutter holds a substantial 95% interest in FanDuel, having initially secured a majority stake back in 2018. This was followed by an increased ownership in 2021 when Flutter acquired additional shares from Fastball.
Once the transaction with Boyd is finalized, Flutter will become the sole owner of FanDuel, valuing the business at approximately $31 billion. The deal is contingent upon standard closing procedures, including necessary regulatory approvals. Flutter intends to finance this acquisition through additional debt and aims to complete it by the third quarter of 2025.
Strategic Growth and Cost Savings
Flutter’s CEO, Peter Jackson, expressed enthusiasm about the deal, stating: “Increasing our ownership of FanDuel will drive significant shareholder value.” He emphasized that the acquisition has been pivotal in transforming Flutter, positioning it as a leader in the U.S. online sports betting and iGaming sectors.
In addition to gaining complete ownership, the agreement between Flutter and Boyd extends their strategic partnership until 2038, with expectations of achieving annual savings of approximately $65 million starting July 2025. This will involve reduced market access costs in various states where FanDuel operates.
As part of this arrangement, FanDuel will cede control of retail sportsbooks operated by Boyd outside of Nevada, which Flutter will manage until mid-2026 before Boyd regains responsibility.
FanDuel’s Transformation and Market Leadership
Since Flutter’s initial investment, FanDuel has rapidly evolved from a daily fantasy sports platform to a leader in the online sports betting landscape. Flutter reports that FanDuel currently commands a 43% market share in sports betting and a 27% share in iGaming across states where it is active.
This growth trajectory coincided with the 2018 repeal of the federal ban on sports betting, which allowed states to legalize wagering. Flutter’s deal for FanDuel was announced shortly after this pivotal legal change.
Currently, legal sports betting is accessible in 38 states, Washington D.C., and Puerto Rico, with FanDuel being operational in the majority.
Fox Corporation’s Strategic Interest
Despite Flutter’s plans to take full ownership, Fox Corporation retains an option to acquire an 18.6% equity stake in FanDuel by December 2030. This arrangement, established in December 2020, would require Fox to pay $4.50 billion. Reports indicate that Fox may be exploring this opportunity, although it would require them to be licensed as a gambling operator.
As Flutter continues to expand its footprint in the U.S. market, the dynamics of partnerships and ownership stakes will play a crucial role in its strategy going forward. The path ahead for FanDuel and Flutter is one of potential growth and consolidation in an increasingly competitive landscape.