How will Flutter Entertainment’s full acquisition of FanDuel reshape its U.S. profitability and leverage profile through 2025?
Flutter Entertainment plc (LSE: FLTR, NYSE: FLUT), the world’s largest online betting operator by revenue, announced on July 11, 2025, that it has entered into a definitive agreement with Boyd Gaming Corporation to acquire the remaining 5% stake in FanDuel Group for approximately $1.755 billion. The agreement takes Flutter’s ownership of FanDuel to 100% and extends its commercial partnership with Boyd through 2038 under revised, lower-cost market access terms.
The buyout implies a total enterprise valuation of $31 billion for FanDuel, the leading online sportsbook and iGaming platform in the United States. The transaction will be financed through a $1.75 billion bridge credit facility and is expected to generate annual savings of $65 million for Flutter beginning July 1, 2025. The deal is subject to customary regulatory approvals and is expected to close in the third quarter of 2025.
Institutional investors welcomed the clarity and efficiency gains, viewing the transaction as both strategically and financially accretive. Flutter shares rose 0.52% to GBX 21,430 on the London Stock Exchange after the announcement, recovering from an earlier open of GBX 21,110.
Why does Flutter want full control of FanDuel—and what makes 2025 the right time to do it?
Flutter first acquired a majority stake in FanDuel in 2018, capitalizing on the landmark U.S. Supreme Court decision that overturned PASPA and opened the door to legal sports betting in individual states. Over the past seven years, FanDuel has emerged as the dominant player in the U.S. market, commanding a 43% share in online sports betting and a 27% share in iGaming as of mid-2025. These gains have been driven by aggressive technology investment, promotional spend, and what Flutter describes as the “Flutter Edge”—a group-wide shared advantage that includes analytics, player acquisition, and risk modeling.
Institutional sentiment has consistently flagged FanDuel as Flutter’s crown jewel. Despite a highly competitive U.S. environment, FanDuel has remained profitable at the adjusted EBITDA level, delivering reliable margin expansion in key states. Flutter’s global revenue reached $14.05 billion in FY2024, and its Q1 2025 revenue was $3.665 billion—highlighting the growing contribution of U.S. operations.
By acquiring the final 5% held by Boyd Gaming, Flutter removes the last external ownership complexity, gains complete control of FanDuel’s capital structure, and reduces long-term market access fees that have constrained U.S. margin growth. Boyd’s stake had been a legacy arrangement tied to the initial formation of FanDuel Group and state-by-state market access in jurisdictions where Boyd operated physical casinos.
How does the new market access agreement with Boyd improve Flutter’s unit economics in the U.S.?
The revised deal significantly reduces Flutter’s cost of market access in states where FanDuel operates under Boyd’s regulatory umbrella. While details of individual state agreements were not disclosed, Flutter stated the changes would yield $65 million in annual cost savings, beginning immediately in Q3 2025.
This efficiency boost is crucial as operators face increasing taxation in large states like New York, where sports betting tax rates exceed 50%. In response, analysts have placed heightened scrutiny on sportsbook operators’ ability to protect margins while maintaining scale. By renegotiating its agreement with Boyd and assuming full ownership of FanDuel, Flutter positions itself to better navigate this margin pressure.
Additionally, the partnership extension to 2038 ensures long-term regulatory continuity and stability, allowing FanDuel to maintain its license footprint in key jurisdictions without incurring unpredictable access fees or restructuring burdens.
What does Flutter’s bridge financing arrangement tell us about its capital strategy and risk appetite?
Flutter will finance the transaction through a $1.75 billion senior secured first lien bridge credit facility, structured with a 12-month maturity and two optional six-month extensions. The facility bears interest at Term SOFR plus a 1.25% margin, consistent with previous agreements such as Flutter’s Term Loan A and B facilities arranged in late 2023.
While the transaction will temporarily increase Flutter’s leverage, management has reiterated its target medium-term net debt to EBITDA ratio of 2.0–2.5x. Analysts expect the FanDuel acquisition to be accretive to group earnings within 12 months, easing concerns over balance sheet stress. Institutional sentiment remains constructive, especially given the highly visible growth trajectory of the U.S. business.
The capital markets backdrop also favors debt over equity in this case. With Flutter’s dual listing on the NYSE and LSE now stabilized, the bridge facility allows for short-term funding flexibility without shareholder dilution. The company may refinance this facility into longer-term debt or integrate it into broader debt restructuring later in FY26.
How has Boyd Gaming’s strategy evolved, and why is it exiting FanDuel now?
Boyd Gaming’s decision to exit its 5% stake aligns with broader trends in U.S. land-based casino operators focusing on core assets. The Las Vegas-based operator has gradually scaled back its direct involvement in digital betting partnerships in favor of licensing models and real estate monetization.
By cashing out its FanDuel stake at a $31 billion valuation, Boyd crystallizes significant returns on an asset it entered during a much earlier stage of development. Analysts interpreted the exit not as a sign of pessimism toward U.S. digital betting, but rather as a strategic reallocation of capital toward physical property upgrades, debt reduction, and REIT-driven optimization strategies.
Despite the sale, Boyd retains a long-term relationship with FanDuel through its extended market access partnership, ensuring continued regulatory interdependence in key states. The restructuring aligns with Boyd’s risk profile, which favors stable, fee-based income over volatile digital platform equity exposure.
How does Flutter’s FanDuel move compare to competitive positioning from DraftKings and BetMGM?
The U.S. online betting market remains a three-way race between FanDuel, DraftKings, and BetMGM. While FanDuel leads on both sportsbook and iGaming share, DraftKings has made aggressive gains through M&A and differentiated tech offerings, while BetMGM continues to leverage its omnichannel strategy via MGM Resorts’ casino footprint.
What separates Flutter’s strategy is its focus on operational ownership and margin leverage. Unlike its peers, Flutter now fully controls its U.S. flagship, without the governance friction of minority shareholders or joint ventures. This makes FanDuel a more streamlined platform for capital deployment, strategic pivots, or even a potential IPO or spin-off in the future.
Though Flutter has not signaled any imminent plans for a U.S. FanDuel listing, analysts believe that 100% ownership and improved margin clarity would facilitate a smoother path should market conditions become favorable. A partial listing could unlock capital without ceding control, mirroring strategies employed by global peers in regulated industries.
What is the outlook for Flutter Entertainment in 2H25 and FY26 after the FanDuel consolidation?
Flutter enters the second half of 2025 with renewed strategic clarity, full control of its most valuable asset, and an immediate boost in operating leverage from reduced U.S. access costs. Investors will be watching for margin expansion in Q3 and Q4 earnings, along with progress on debt reduction and FanDuel user acquisition metrics during the NFL season.
Longer term, analysts expect Flutter to consolidate its leadership in the U.S. while growing its international brands such as PokerStars, Sisal, Snai, and Betfair. Its total FY2024 revenue of $14.05 billion—up 19% year-over-year—reflects resilience in multiple geographies, with the U.S. now a core profit engine rather than just a growth market.
The FanDuel consolidation could also accelerate Flutter’s ability to deploy group-wide technologies across regions, from real-time risk pricing to AI-driven marketing and cross-brand customer management. These shared systems under the Flutter Edge model will likely see deeper integration now that U.S. governance is fully centralized.
With its bridge financing in place, margin visibility improving, and strategic control of FanDuel secured, Flutter appears positioned to capitalize on both organic and inorganic opportunities through FY26. The deal may also serve as a signal to the broader market that consolidation in U.S. online betting is entering a new phase—less focused on land grabs, and more on margin control and capital optimization.
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