Flutter Entertainment regained total control over FanDuel earlier this month, albeit at a hefty price tag of $1.76bn. Boyd Gaming had acquired 5% of the business in 2018 when it agreed to provide market access to the operator in the burgeoning US legal sports betting market.
The Las Vegas-based firm reported its second-quarter results on Thursday, beating estimates thanks to broad-based growth across its nationwide properties. Boyd Gaming CEO Keith Smith revealed that the company paid only $10m for the stake and said that selling for almost $2bn is a “pretty fair return” for shareholders.
short-term it will go towards reducing debt
When asked in the Q&A segment of the earnings call what the immediate plan is with the money from the FanDuel deal, Smith said that short-term it will go towards reducing debt. In the long run, it intends to use the money to focus on “higher-returning investments,” although he warned that this doesn’t necessarily mean another transaction.
Despite selling the FanDuel stake, Boyd Gaming still sees opportunities in the online gambling segment with its $170m purchase of Pala Interactive in 2022 to help it serve a “competitive product” in markets where it currently operates.