{"id":670,"date":"2025-07-10T21:46:51","date_gmt":"2025-07-10T21:46:51","guid":{"rendered":"http:\/\/www.chuckwardrealestate.com\/?p=670"},"modified":"2025-09-22T12:09:56","modified_gmt":"2025-09-22T12:09:56","slug":"flutter-buying-boyd-fanduel-stake-valuing-sportsbook-at-31b","status":"publish","type":"post","link":"http:\/\/www.chuckwardrealestate.com\/index.php\/2025\/07\/10\/flutter-buying-boyd-fanduel-stake-valuing-sportsbook-at-31b\/","title":{"rendered":"Flutter Buying Boyd FanDuel Stake Valuing Sportsbook at $31B"},"content":{"rendered":"<ul>\n<li><strong>Flutter Entertainment to buy Boyd Gaming\u2019s 5% FanDuel stake for $1.75 billion <\/strong><\/li>\n<li><strong>That implies FanDuel is worth $31 billion<\/strong><\/li>\n<li><strong>The price tag is about 25% of Boyd\u2019s current market cap<\/strong><\/li>\n<\/ul>\n<hr \/>\n<p>Shares of Boyd Gaming (NYSE: BYD) closed higher by 1.50% and continued upward in Thursday\u2019s after-hours session on news regional casino is selling its 5% interest in FanDuel to Flutter Entertainment (NYSE: FLUT) for $1.755 billion.<\/p>\n<figure id=\"attachment_236469\" aria-describedby=\"caption-attachment-236469\" data-style=\"width: 858px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" class=\"wp-image-236469 size-post-thumbnail-858xAUTO lazyload\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" alt=\"NFL Sunday Ticket\" width=\"858\" height=\"483\" data-src=\"http:\/\/www.chuckwardrealestate.com\/wp-content\/uploads\/2025\/07\/FD-858x483-1.jpg\"><figcaption>The FanDuel Sportsbook logo. Parent company Flutter is paying $1.75 billion to Boyd Gaming for 5% of the sportsbook operator. (Image: FanDuel Sportsbook)<\/figcaption><\/figure>\n<p>Flutter will now control 100% of FanDuel, which is the largest online sportsbook operator in the US and one of the biggest names in the iGaming industry. The relationship between the two gaming companies dates back to August 2018 when they <a href=\"https:\/\/www.casino.org\/news\/fanduel-group-teams-up-with-boyd-gaming-on-us-sports-betting\/\">reached a strategic agreement<\/a> that paved the way for Flutter to leverage FanDuel for entry into the US sports wagering market. As part of that accord, Boyd gained an equity stake in FanDuel.<\/p>\n<p>Flutter said the deal, which is expected to close in the current quarter, implies FanDuel\u2019s valuation is $31 billion and it will realize annual cost savings of $65 million by way of \u201csignificantly reduced market access costs in the states where FanDuel\u2019s market access is provided by Boyd.\u201d In Nevada, Boyd\u2019s sports betting platform is Boyd Sports, but <a href=\"https:\/\/www.casino.org\/news\/boyd-applying-fanduel-name-to-downtown-las-vegas-sportsbook\/\">it partners with FanDuel<\/a> in other states in which it has land-based casinos and sports wagering licenses. In the middle of 2026, Boyd will take over operations of its retail sportsbooks outside of Nevada.<\/p>\n<blockquote class=\"main-blockquote\">\n<p>Under terms of the revised market-access agreements with FanDuel, the Company now expects its Online segment will generate $50 million to $55 million in operating income and adjusted earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) for the full year 2025, and approximately $30 million in 2026,\u201d according to a statement issued by Boyd.<\/p>\n<\/blockquote>\n<p>The Las Vegas-based company said it intends to use proceeds from the transaction to reduce debt. The Boyd\/Flutter relationship has been extended through 2038.<\/p>\n<h2>FanDuel Valuation Dominates Other Sports Betting Stocks<\/h2>\n<p>With a market capitalization of $50.48 billion at today\u2019s close, Flutter is already the world\u2019s largest publicly traded gaming company and by a comfortable margin at that.<\/p>\n<div class=\"callout\">\n<p>However, the $31 billion implied valuation for FanDuel implies <a href=\"https:\/\/www.casino.org\/news\/flutter-has-recession-insulation-multiple-tailwinds-says-analyst\/\">Flutter shares may be undervalued<\/a>. If nothing, it confirms FanDuel is worth significantly more than rivals. For example, the combined market value of DraftKings (NASDAQ: DKNG) and Rush Street Interactive (NYSE: RSI) &#8212; two pure-play iGaming\/sports betting stocks &#8212; is about $25 billion.<\/p>\n<\/div>\n<p>Four years ago, there were rumors about Flutter <a href=\"https:\/\/www.casino.org\/news\/fanduel-spinoff-said-to-be-delayed-until-next-year\/\">potentially spinning off<\/a> FanDuel to create value for shareholders. Given the price tag Boyd is commanding in the aforementioned transaction, it\u2019s possible some investors will want to revisit the issue of separating the US business from Flutter, but the company did not mention that possibility.<\/p>\n<p><strong>Flutter did confirm that reach an agreement with select creditors for a senior secured first lien term loan worth $1.75 billion to finance the purchase of the FanDuel stake from Boyd. That credit facility matures 12 months after it\u2019s initially used \u201cwith two additional six-month extension options.\u201d<\/strong><\/p>\n<h2>Fox May Have Overstated Value of FanDuel Stake<\/h2>\n<p>Boyd is a clear winner in the deal, commanding a price tag that\u2019s roughly equivalent to 25% of its market value while gaining capital to firm its balance sheet. It also gains long-term stability in the FanDuel relationship, but there may be a \u201closer\u201d in the scenario.<\/p>\n<p>Media giant Fox Corporation (NASDAQ: <a href=\"https:\/\/seekingalpha.com\/symbol\/FOX#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link\">FOX<\/a>), which has an option to acquire 18.6% of FanDuel, earlier this year valued <a href=\"https:\/\/www.casino.org\/news\/fox-plans-to-take-fanduel-stake-at-2-2-billion-discount\/\">FanDuel at $35 billion<\/a>, meaning 18.6% is worth $6.5 billion. Flutter said in the statement that the sportsbook is worth $31 billion and 18.6% of that amount is $5.76 billion.<\/p>\n<p><strong>The media company is working through the licensing process in the states in which FanDuel books bets in an effort to potentially exercise its option in the future. Fox also holds an equity stake in Flutter, which is appreciating because the gaming stock is up 46.66% over the past year.<\/strong><\/p>\n<p>The post <a href=\"https:\/\/www.casino.org\/news\/flutter-buying-boyd-fanduel-stake-valuing-sportsbook-at-31b\/\">Flutter Buying Boyd FanDuel Stake Valuing Sportsbook at $31B<\/a> appeared first on <a href=\"https:\/\/www.casino.org\/news\">Casino.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Flutter Entertainment to buy Boyd Gaming\u2019s 5% FanDuel stake for $1.75 billion That implies FanDuel is worth $31 billion The price tag is about 25% of Boyd\u2019s current market cap Shares of Boyd Gaming (NYSE: BYD) closed higher by 1.50% and continued upward in Thursday\u2019s after-hours session on news regional casino is selling its 5% interest in FanDuel to Flutter [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":672,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[12],"tags":[],"_links":{"self":[{"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/posts\/670"}],"collection":[{"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/comments?post=670"}],"version-history":[{"count":2,"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/posts\/670\/revisions"}],"predecessor-version":[{"id":673,"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/posts\/670\/revisions\/673"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/media\/672"}],"wp:attachment":[{"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/media?parent=670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/categories?post=670"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/tags?post=670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}