DAVY VIEW

Flutter Entertainment has announced that it will buy the 5% of FanDuel owned by Boyd for a cash consideration of $1.755bn ($1.55bn for the acquisition of the stake). It has acquired the stake at a very attractive implied FanDuel valuation of c.$31bn. This is a discount to our implied valuation of c.$40bn, likely due to the fact that it was a minority stake in an entity below Flutter group level. It will also make a payment ($205m) for the renegotiation of its market access at more attractive terms, with an expected annualised saving of $65m. This is undoubtedly a good use of capital as it provides additional certainty around market access and increased ownership of this key strategic asset. In a business where scale provides a key structural advantage, FanDuel dominates US market share with a 43% Gross Gaming Revenue share of online sports betting (no.2 is 35%) and a 27% market share in iGaming (no.2 is 24%).