Strong results reported by Boyd Gaming in Q2 2025
In a strategic move, Boyd Gaming has sold its 5% stake in FanDuel, a leading sports betting and online gaming company, for approximately $1.76 billion in late July 2025. This transaction is forecasted to significantly improve Boyd Gaming's financial position.
Debt Reduction and Balance Sheet Strengthening
The cash proceeds from the sale will be used to repay existing debt, reducing leverage and improving financial stability for Boyd Gaming [1][5]. This move is expected to enhance the company's overall financial health and stability.
Focus on Core Business and Growth
By divesting its minority stake in FanDuel, Boyd Gaming can now concentrate on its traditional gaming properties and operational expansion. This strategic decision allows the company to maintain a long-term partnership with FanDuel and its parent company, Flutter, through 2038 [1][2][3].
Sustained Income Through Partnership
Though no longer an equity holder, Boyd Gaming will continue to receive fixed-fee income from FanDuel’s mobile sports betting operations in several states. This arrangement provides stable revenues while reducing Florida's market access costs, benefiting both parties [2][3].
Operational Efficiency and Market Positioning
The deal allows Flutter to consolidate FanDuel ownership and streamline its U.S. sports betting dominance. Meanwhile, Boyd Gaming benefits financially and retains a presence through the extended partnership [2][3].
Q2 2025 Financial Results
In addition to the sale, Boyd Gaming recently released its financial results for the second quarter of 2025. The company achieved its strongest property-level revenue and Adjusted EBITDAR growth in more than three years.
Gaming revenue increased by more than $20 million to $671.5 million in Q2 2025. Total adjusted EBITDAR for the second quarter of 2025 increased to $357.9 million. The total revenue for the quarter ended June 30, 2025, was $1.03 billion [4].
Online operations saw the biggest year-over-year growth in terms of revenue, increasing from $129.9 million in Q2 2024 to $173.1 million in Q2 2025. Food and beverage revenue also increased year-over-year to $78.2 million [4].
Looking Ahead
The strategic divestment is expected to enable Boyd Gaming to continue pursuing new growth opportunities and returning capital to shareholders. Boyd Gaming plans to sell its stake in FanDuel to Flutter, which is expected to further strengthen the company's financial position [5].
In summary, the sale of Boyd Gaming's stake in FanDuel is a strategic move that enhances the company's financial flexibility and supports its growth ambitions, while preserving a collaborative relationship with FanDuel and Flutter that provides ongoing income and market access [1][5].
By selling its stake in FanDuel, Boyd Gaming can now focus on investing in its core business, traditional gaming properties, and operational expansion, aiming for long-term growth [1]. Additionally, despite no longer being an equity holder, Boyd Gaming will continue to generate stable income through fixed-fee payments from FanDuel's online gambling operations, diversifying its revenue sources and reducing market access costs [2].
