This summer, the gaming and betting industry giant, Flutter Entertainment, announced its plans to grow its stake in FanDuel to 100% under an agreement with Boyd Gaming.
Flutter Entertainment grows stake in FanDuel to 100%
Upon announcing its plan, the company confirmed it is prepared to pay approximately $1.755bn to Boyd in exchange for its 5% stake in FanDuel, which is one of the top betting and gaming operators in the United States.
On Thursday this week, the two companies confirmed that the previously announced sale of the 5% equity in FanDuel Group was successfully completed.
Flutter Entertainment's statement on the matter confirmed that it has completed the extension of its "long-term strategic partnership with Boyd Gaming Corporation to 2038 and the buyout of Boyd's 5% stake in FanDuel Group."
The company further added: "As previously announced, the market access savings secured as part of the transaction will be effective July 1, 2025."
The completion of the strategic transaction means that Flutter now has 100% ownership of FanDuel.
Still, it is worth noting that Fox Corporation has the option to buy up to 18.6% equity interest in the leading betting and gaming brand.
Fox Corporation is permitted to exercise this right on or before December 3, 2030.
The completion of the sale of Boyd Gaming's stake in FanDuel comes after FanDuel announced a surcharge for bettors in Illinois this summer.
Early in June, the betting and gaming leader confirmed its plans to roll out a $0.50 surcharge applicable to every wager placed by bettors in Illinois.
At the time, FanDuel said that the surcharge would be implemented, effective from September 1, 2025.
Divesting the asset, Boyd Gaming plans to use the proceeds to repay existing debt
Similar to Flutter, Boyd Gaming acknowledged the completion of the sale of its equity in FanDuel to Flutter.
Moreover, Boyd Gaming wrote: "Boyd Gaming received cash proceeds of $1.758 billion from the transaction and intends to use proceeds to repay existing debt."
The company added that it remains dedicated to following its strategy, which focuses on property investment.
Last but not least, Boyd Gaming said that it will continue to pursue new growth opportunities and return capital to its shareholders while maintaining a strong market position.
