Earlier this month, Flutter Entertainment regained full ownership of FanDuel for a significant $1.76 billion. Boyd Gaming had initially acquired a 5% stake in the company in 2018, facilitating the operator’s access to the emerging U.S. legal sports betting market.
The Las Vegas-based firm recently announced its second-quarter financial results, surpassing expectations due to widespread growth across its national locations. Boyd Gaming CEO Keith Smith stated that the company invested only $10 million for the stake, and the sale for nearly $2 billion represents a “pretty fair return” for its shareholders.
During the earnings call, Smith was asked about the immediate plans for the proceeds from the FanDuel transaction. He replied that in the short term, the funds would be used to reduce debt. In the longer term, the company plans to focus on “higher-returning investments,” though this does not necessarily imply another acquisition.
Despite exiting its FanDuel investment, Boyd Gaming remains optimistic about online gambling opportunities. Its $170 million acquisition of Pala Interactive in 2022 aims to deliver a “competitive product” in its current markets.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com