Flutter Entertainment Acquires FanDuel – Deal Analysis

Deal Overview

In May 2018 — one week after the US Supreme Court struck down PASPA, opening the door to nationwide sports betting legalisation — Paddy Power Betfair (soon to become Flutter Entertainment) completed its acquisition of a majority stake in FanDuel, the daily fantasy sports platform with 8 million US customers. The timing was not coincidental: Flutter had been monitoring FanDuel’s merger with rival DraftKings, which collapsed in 2017 under regulatory scrutiny, and moved decisively when the US market opened. The initial acquisition gave Flutter a controlling interest at a valuation that, in retrospect, was one of the most advantageous deals in iGaming history — FanDuel is now valued at approximately $31 billion.

The Strategic Logic in 2018

FanDuel’s value in 2018 was not its revenue — daily fantasy sports was under significant regulatory pressure and the business had been loss-making. The value was its database of 8 million US sports fans with payment credentials, verified age, and demonstrated willingness to wager, combined with brand recognition in a market that was about to legalise sports betting state by state. Flutter understood that this customer base, combined with its own technology and product expertise from Paddy Power Betfair, could convert into a dominant sports betting operator within years. The bet proved correct.

From FanDuel to $31B — The Full Ownership Journey

Flutter’s path to 100% ownership took seven years and multiple tranches. In December 2020, Flutter acquired the remaining 37.2% minority stake held by Fastball Holdings for $4.2 billion — at a $11.2 billion enterprise value for FanDuel, already a remarkable appreciation from 2018. By December 2020, FanDuel had become the market share leader in US sports betting following PASPA’s overturning. In July 2025, Flutter completed the final step — acquiring Boyd Gaming’s remaining 5% stake for $1.755 billion, at a $31 billion FanDuel valuation — achieving 100% ownership of what had become the dominant US online gambling operator with 43% sports betting market share and $5.79 billion in 2024 revenue.

Key Facts

• FanDuel customers at 2018 acquisition: 8 million daily fantasy users
• 2018 deal timing: one week after PASPA overturned by Supreme Court
• 2020: Flutter acquires remaining 37.2% for $4.2B (FanDuel valued at $11.2B)
• 2024: FanDuel revenue $5.79B; $50.8B wagered on platform
• 2025: Flutter acquires Boyd’s final 5% for $1.755B (FanDuel valued at $31B)
• US sports betting market share (2024): 43% — clear market leader
• Flutter NYSE listing: January 2024 (secondary to primary LSE listing)

Market Signal

The FanDuel acquisition is the most successful single deal in online gambling history by value creation. The key lesson for iGaming M&A practitioners is timing and optionality: Flutter acquired a majority stake at a modest valuation with contractual options on the remainder, correctly identified a regulatory catalyst (PASPA repeal) that would unlock the asset’s value, and exercised those options as the thesis played out. For any operator or investor considering US market entry via acquisition, this deal defines the benchmark.

← Back to iGaming M&A Database | Browse US iGaming Businesses for Sale | Browse iGaming Businesses for Sale