Boyd Gaming’s leadership sought to tamp down M&A speculation when the company presented its Q2 2025 results, insisting that the sale of its 5% stake in FanDuel is not a signal of impending dealmaking.
“This FanDuel transaction is not a precursor to another transaction,” said president and CEO Keith Smith on the company’s earnings call.
“We determined that as we’re approaching the end of this partnership, now is an appropriate time to monetise this investment and to focus the proceeds on future growth.”
Boyd Gaming delivered a solid second quarter in 2025, with revenue rising approximately 3.4% year-on-year to $1.0bn.
Net income increased to $150.4m, or $1.84 per share, compared to $139.8m, or $1.47 per share, in Q2 2024.
Total adjusted EBITDAR for the quarter climbed to $357.9m from $344.2m.
Gaming revenue grew by 3% to $671.5m. Performance was particularly strong in the Las Vegas Locals segment, which recorded its best quarterly growth in over two years, with margins approaching 50%.
The Midwest & South region also delivered solid results, driven by continued strength at Treasure Chest Casino.
Meanwhile, Boyd’s online segment continued to expand, growing 33.2% year-on-year to $173m.
FanDuel exit
The sale of Boyd’s FanDuel stake to Flutter Entertainment — first announced earlier this month — will yield an estimated $1.4bn in after-tax proceeds.
CFO Josh Hirsberg said the transaction “further enhances our financial flexibility, strengthens our already strong balance sheet and is accretive to free cash flow.”
Boyd plans to immediately repay all debt outstanding under its credit facility, reducing lease-adjusted leverage from approximately 3.2x to below 2x. Annual interest savings are expected to reach $85m.
The deal also included a renegotiation of market access terms with Flutter, extending Boyd’s agreements through 2038 at a lower fee structure.
“We estimate our online segment will generate $50m to $55m in EBITDAR for the full year 2025 followed by $30m in EBITDAR in 2026,” said Hirsberg.
Despite the sizeable cash infusion and improved leverage metrics, both Smith and Hirsberg emphasised that Boyd’s long-term capital allocation strategy remains unchanged.
“This transaction doesn’t change our strategy of having a balanced approach to capital allocation,” said Smith.
“It merely allows us to continue our strong track record of making sound capital allocation decisions from a stronger position.”
M&A outlook
Still, the timing of the FanDuel deal — three years before the original partnership agreement expired — has intensified speculation around Boyd’s potential acquisition targets, particularly Penn Entertainment.
Boyd reportedly made a $9bn offer for Penn last summer, which would have seen Flutter assume the digital assets, including ESPN Bet, while Boyd absorbed the land-based operations.
Although those talks cooled, Boyd’s fortified balance sheet puts it in a far stronger position should it revisit the idea.
But Boyd executives stressed that no new deal is in the works and reiterated their commitment to disciplined capital deployment.
“We’ve been really disciplined,” said Hirsberg. “Just because we have a ton of flexibility doesn’t mean we’re going to go out and try to do something that doesn’t make sense.”
Smith added that the company remains open to regional acquisitions, but only where the size, quality, and regulatory environment align with its strategic goals.
“Nothing has really changed in how we view M&A,” he said. “It’s got to be significant enough to move the needle.”
Digital strategy
While the FanDuel sale removes a high-growth asset from Boyd’s portfolio, executives reiterated that their approach to digital gaming remains focused and regionally aligned.
“When we bought Pala [Interactive]… we described what we call the regional strategy,” said Smith.
“We wanted to be able to make sure we had a compelling and competitive product in the markets where we operate and in some of the important surrounding states where we draw customers that we were not looking to have a national product or be a national leader in the online casino business. That remains the same today.”
Boyd will begin managing its own sportsbooks outside Nevada in 2026, leveraging four decades of experience in the state.
Still, Smith indicated online casino is the bigger priority: “We think they’re clearly complementary… long term, you need to have both products as part of your portfolio.”
