Boyd Gaming Sets to Cash Out $1.755 Billion from FanDuel Stake Sale

Boyd Gaming Announces Sale of FanDuel Stake

Boyd Gaming Corporation (NYSE: BYD) has entered a definitive agreement to sell its 5% equity interest in FanDuel Group for a significant sum of $1.755 billion. This move, designed to unlock unrealized value, marks a pivotal moment for Boyd as it sharpens its focus on strengthening its financial position while capitalizing on future growth opportunities. The transaction is anticipated to finalize in the third quarter of 2025, pending regulatory approvals.

Keith Smith, President and CEO of Boyd Gaming, emphasized that this sale would not only provide vital cash flow to alleviate existing debts but also enhance Boyd's strategic approach to investing in its expansive properties. With this bold maneuver, Boyd Gaming seeks to augment its operational capacity while ensuring a robust balance sheet.

Additionally, the agreement includes the termination of existing market-access agreements and the establishment of new terms with FanDuel, extending their partnership through 2038. This strategic collaboration enables Boyd to capitalize on market growth across various states, including Iowa, Indiana, Kansas, Louisiana, and Pennsylvania.

FanDuel, known for its leadership in the online sports-betting arena, will continue to manage Boyd's brick-and-mortar sportsbooks outside Nevada until mid-2026. After that, Boyd will take over these operations, further solidifying its commitment to this lucrative sector.

Financial projections are optimistic, with Boyd's Online segment expected to generate between $50 million and $55 million in operating income for the fiscal year 2025, and around $30 million for 2026. The partnership with FanDuel has proven to be mutually beneficial, allowing Boyd to explore new avenues within the rapidly expanding sports betting industry.

Moelis & Company LLC served as the exclusive financial advisor for Boyd Gaming in this transaction, while Morrison & Foerster LLP provided legal counsel. The commercial agreements were further supported by Brownstein Hyatt Farber Schreck, LLP.

As Boyd Gaming approaches its 50th anniversary in 2025, it continues to solidify its status as a premier player in the gaming entertainment sector. The company's diversified operations across 28 properties in 10 states, as well as its strategic investments in online platforms like Boyd Interactive, signify its vital role in the modern gaming landscape. The sale of FanDuel's stake showcases Boyd's agile strategy in navigating the complexities of the gaming industry and reflects its commitment to delivering unparalleled experiences for its guests and shareholders alike.

In conclusion, the substantial gains from the FanDuel sale are expected to propel Boyd Gaming into a new era of growth, allowing for renewed investments in existing properties and ventures, ultimately benefiting stakeholders and customers. As the gaming industry evolves, Boyd remains poised to adapt and thrive amid the shifting dynamics of the market.