Boyd Gaming sells FanDuel stake to Flutter for $1.755 billion

Boyd Gaming Corporation (NYSE: BYD) announced it has entered into a definitive agreement to sell its 5% equity interest in FanDuel Group to Flutter Entertainment plc (NYSE: FLUT) for $1.755 billion in cash.

The transaction is expected to close in the third quarter of 2025, subject to regulatory approvals. Boyd Gaming plans to use the net proceeds to reduce debt.

"This transaction unlocks the tremendous unrealized value that our investment in FanDuel has created for our Company," said Keith Smith, President and Chief Executive Officer of Boyd Gaming.

As part of the transaction, Boyd Gaming and FanDuel will terminate certain existing market-access agreements and enter into new agreements extending through 2038. The new agreements will provide Boyd Gaming with a fixed fee per state from FanDuel's mobile sports betting operations in Iowa, Indiana, Kansas, Louisiana and Pennsylvania, as well as FanDuel's online casino operations in Pennsylvania.

FanDuel will continue to operate Boyd's retail sportsbooks outside of Nevada through mid-2026, after which Boyd will assume responsibility for these operations.

Under the revised market-access agreements, Boyd Gaming expects its Online segment to generate $50 million to $55 million in operating income and Adjusted EBITDAR for 2025, and approximately $30 million in 2026.

Moelis & Company LLC served as exclusive financial advisor to Boyd Gaming on the transaction, while Morrison & Foerster LLP served as legal advisor.

Boyd Gaming operates 28 gaming entertainment properties in 10 states and manages a tribal casino in northern California. The company also owns and operates Boyd Interactive, a B2B and B2C online casino gaming business.

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