Boyd Gaming to sell FanDuel stake to Flutter for $1.755 billion

LAS VEGAS - Boyd Gaming Corporation (NYSE:BYD), a gaming operator with a market capitalization of $6.95 billion and impressive gross profit margins of 61.62%, announced Thursday it has agreed to sell its 5% equity stake in FanDuel Group to Flutter Entertainment plc (NYSE:FLUT) for $1.755 billion in cash. According to InvestingPro, Boyd’s stock is trading near its 52-week high, reflecting strong market confidence in the company’s strategic decisions.

The all-cash transaction is expected to close in the third quarter of 2025, subject to regulatory approvals. Boyd plans to use the proceeds to reduce debt, which could significantly improve its current debt-to-equity ratio of 3.13. InvestingPro analysis reveals over 10 additional key insights about Boyd’s financial health and future prospects, available exclusively to subscribers.

As part of the agreement, Boyd and FanDuel will terminate existing market-access agreements and enter new ones extending through 2038. The revised agreements provide Boyd with a fixed fee per state from FanDuel’s mobile sports-betting operations in five states and online casino operations in Pennsylvania.

"This transaction unlocks the tremendous unrealized value that our investment in FanDuel has created for our Company," said Keith Smith, President and CEO of Boyd Gaming, in the press release statement.

FanDuel will continue operating Boyd’s retail sportsbooks outside Nevada through mid-2026, after which Boyd will assume responsibility for these operations.

Under the revised market-access agreements, Boyd expects its Online segment to generate $50-55 million in operating income and Adjusted EBITDAR for 2025, and approximately $30 million in 2026.

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

Boyd Gaming operates 28 gaming entertainment properties across 10 states and manages a tribal casino in northern California. The company, which generated $3.96 billion in revenue over the last twelve months and maintains healthy operating margins, is celebrating its 50th anniversary in 2025. For detailed analysis and comprehensive valuation metrics, investors can access Boyd Gaming’s full Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks.

In other recent news, Boyd Gaming’s financial performance has caught the attention of analysts, resulting in several adjustments to its stock price targets. Mizuho Securities raised its price target for Boyd Gaming to $86, following the company’s strong earnings report, which included a total property EBITDA of $361.3 million, surpassing both Mizuho’s and the Street’s projections. Similarly, Stifel increased its price target to $76, maintaining a Buy rating due to Boyd Gaming’s consistent performance and stable customer segments. Meanwhile, JPMorgan initiated coverage with a neutral rating, emphasizing Boyd’s growth pipeline and capital return profile, including a valuable 5% stake in FanDuel.

In another development, Boyd Gaming is reportedly in discussions to sell its 5% stake in FanDuel to Flutter Entertainment for nearly $2 billion, although neither company has confirmed the talks. Additionally, new tax legislation affecting tipped workers could potentially boost Boyd Gaming’s revenue, as noted by Citizens JMP, though the exact financial impact remains uncertain. These recent developments highlight Boyd Gaming’s strategic movements and financial stability amidst a dynamic market environment.

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