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Boyd Gaming, which owns and operates Valley Forge Casino, announced that it is selling its 5% interest in FanDuel back to Flutter for $1.755 billion.
FanDuel has become a dominant gambling company, especially in Pennsylvania, as it is the No. 1 operator in both online casino and sports betting. The operator is able to offer its products in the Keystone State through its partnership with Valley Forge Casino.
The Pennsylvania Gaming Control Board (PGCB) confirmed to PlayPennsylvania that it needs to “review the tenets of the sale to ensure it meets the requirement of the law and regulations.”
Boyd Gaming to focus on investing in properties
A 5% interest that sold for nearly $1.8 billion means that Boyd’s partnership with FanDuel Sportsbook and FanDuel Casino was extremely valuable. Boyd’s CEO, Keith Smith, alluded to that in his statement.
“The partnership between Boyd and FanDuel has been a remarkable success for both companies. FanDuel has emerged as the nation’s clear leader in online sports-betting, while Boyd has been able to leverage this partnership to profitably participate in the rapid growth of sports betting across the country.
“It has been a privilege to work with the Flutter and FanDuel teams, and we look forward to supporting FanDuel’s continued growth and success through our market-access agreements across the country.”
The deal is slated to close at some point in Q3. It’ll also come with a new market-access agreement that is good until 2038, and a fixed fee from multiple states, including Pennsylvania.
Boyd plans on using the funds to reduce debt, as well as put more effort into its properties, Smith said.
“This transaction unlocks the tremendous unrealized value that our investment in FanDuel has created for our Company.
“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.”
FanDuel is also expected to operate Boyd’s retail sportsbook at Valley Forge until mid-2026.
Not much changes to PA’s gambling industry
FanDuel is still going to be ever-present in the Pennsylvania market, operating both its sportsbook and casino. Valley Forge and FanDuel are still partnered for market access.
FanDuel is the top sportsbook in the state, amassing nearly $15 billion in lifetime handle and $1.5 billion in lifetime revenue. The next closest operator is DraftKings, who has compiled $9.7 billion in handle and $716.3 million in revenue.
The PGCB does not break down online casino revenue by operator. However, partnered with Valley Forge, along with Stardust, the license generated $83.4 million in May revenue. Much of that can be attributed to FanDuel.
The Valley Forge license finished roughly $17 million behind Hollywood Penn National, which is partners with DraftKings, BetMGM, Fanatics and Hollywood.
The sale means that FanDuel now has entirely full control of its products. It’s still extremely well-positioned as the top operator in Pennsylvania.
