Ireland-based Flutter Entertainment is buying out Fastball Holdings’ stake in FanDuel in a deal worth $4.2 billion. The transaction takes Flutter’s share of the online gaming company — which now has an estimated enterprise value of $11.2 billion — from 57.8% to 95%.
Flutter’s U.S. business, which is largely driven by FanDuel, saw its revenue increase 82% to $213 million in the third quarter. FanDuel said it has more than doubled its active sportsbook customers since last year.
On a roll: The deal follows Flutter’s acquisition of Canadian gaming company The Stars Group in May, which included complete ownership of Fox Bet. Fox Corp., which currently owns a 2.6% stake in Flutter, will take part in the capital raising for the FanDuel buyout.
- Flutter also operates a variety of sportsbooks overseas, including Paddy Power, Betfair and Sky Bet.
International and U.S. gambling companies have been merging as of late:
- U.S. casino operator Caesars Entertainment agreed to acquire Britain’s William Hill for $3.7 billion in September.
- Online gaming provider 888 signed three multi-year market access agreements to launch in Colorado, Indiana and Iowa with the 888Sport brand during 2021.
- Sports betting and casino company BetMGM is a joint venture between MGM Resorts and Europe-based GVC Holdings.