Boyd Gaming to sell 5% FanDuel stake to Flutter for $1.755B cash consideration

Boyd Gaming Corporation (BYD) announced it has entered into a definitive agreement to sell the company’s 5% equity interest in FanDuel Group to Flutter Entertainment plc (FLUT) for cash consideration of $1.755B. The transaction is expected to close in the third quarter of 2025, subject to regulatory approvals. The company intends to use net proceeds to reduce debt. In addition to purchasing Boyd’s equity interest in FanDuel, Boyd and FanDuel will terminate certain existing market-access agreements between the parties and enter into new agreements to provide, among other things, for an extended term 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, upon the close of this transaction. FanDuel will also continue to operate Boyd’s retail sportsbooks outside of Nevada through mid-2026, after which time Boyd will assume responsibility for these operations. Under terms of the revised market-access agreements with FanDuel, the company now expects its Online segment will generate $50M to $55M in operating income and Adjusted EBITDAR for the full year 2025, and approximately $30M in 2026.