Flutter Entertainment announced Thursday it will acquire a minority shareholder’s stake in FanDuel as sports gambling continues to explode across the U.S.
Flutter will acquire Fastball’s entire 37.2% holding for more than $4.1 billion. The deal will push Flutter’s stake in FanDuel to 95% from 57%.
“Today’s news affirms FanDuel’s market-leading position in the US and our meaningful growth trajectory,” Matt King, the CEO of FanDuel, said in a news release.
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“As the first online operator to reach more than $1bn in Global Gaming Revenues, with around $850m expected in net revenue this year, despite COVID disruption, we now have 9.5m customers betting across our best-in-class product verticals, and a 43% market share in the states that allow sports betting in Q3. Based on our current projections, we expect our online sportsbook to be available in 14 states and our online gaming products to be in four states by the end of 2021. I look forward to leading FanDuel into the future under a clear ownership structure and at a time when the regulation of sports betting and online gaming continues to accelerate in the U.S.”
The agreement is conditional on shareholder approval.
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Lachlan Murdoch, the executive chairman and CEO of Fox Corporation, also commented on the transaction. Fox Bet is one brand under Flutter Entertainment.
“Maintaining our ownership stake in Flutter signifies our long-term commitment to Flutter, and ongoing confidence in management’s ability to execute against the fast-growing US opportunity,” Murdoch said in the news release. “FOX’s audiences have proven to be highly engaged with free to play and wagering content, and we are excited to offer them access to products from Flutter’s market-leading stable of US brands.”
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FanDuel has recently partnered with the NBA’s Detroit Pistons and Memphis Grizzlies on a sports-betting partnership. The company also launched its online sports betting app in Tennessee in October.
Fox Corp. is the parent of FOX Business and Fox News.