Boyd Gaming to sell FanDuel interest for $1.75 billion

Boyd Gaming announced Thursday an agreement to sell its 5% stake in FanDuel Group back to its parent, Flutter Entertainment, for $1.75 billion in cash. In the deal, Boyd and FanDuel will extend their market-access agreements for mobile sports betting and online casinos through 2038 and Boyd takes back operation of its retail sportsbooks outside of Nevada in 2026.

The proceeds of the transaction, which is expected to close in the third quarter, will be used to reduce debt, Boyd announced.

“This transaction unlocks the tremendous unrealized value that our investment in FanDuel has created for our company,” said Boyd Gaming President and CEO Keith Smith. “As a result, we are in a significantly stronger financial position to continue executing our strategy of investing in our properties, pursuing growth opportunities, returning capital to our shareholders, and maintaining a strong balance sheet.”

In addition to purchasing Boyd’s equity interest in FanDuel, Boyd and FanDuel will terminate certain existing market-access agreements and enter into new ones through 2038.

The agreements will also provide Boyd 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 also continue to operate Boyd’s retail sportsbooks outside of Nevada through mid-2026, when Boyd will assume responsibility for these operations.

Under terms of the revised market-access agreements with FanDuel, Boyd now expects its online segment will generate $50 million to $55 million in operating income and Adjusted EBITDAR for the full year 2025 and about $30 million in 2026.

“The partnership between Boyd and FanDuel has been a remarkable success for both companies,” Smith said.

“FanDuel has emerged as the nation’s clear leader in online sports betting, while Boyd has leveraged this partnership to profitably participate in the rapid growth of sports betting across the country.”

Moelis & Company LLC served as exclusive financial advisor to Boyd Gaming on the transaction. Morrison & Foerster LLP served as legal advisor to Boyd Gaming on the transaction, with Brownstein Hyatt Farber Schreck LLP advising on the commercial agreements.