Fantasy sports business FanDuel, which launched in Edinburgh in 2009, has been valued at $31 billion (£23bn) after Paddy Power owner Flutter took full control.
London-listed Flutter has acquired the remaining 5% of FanDuel it did not own from Boyd for $1.76 billion (£1.3bn).
It now has 100% ownership of the business, which has rapidly grown in recent years after betting rules in US states were eased.
Flutter owns a portfolio of other global brands, including, Betfair and Sky Betting & Gaming. It acquired a controlling stake in FanDuel following the US Supreme Court’s decision in May 2018 to strike down a 1992 law that effectively banned sports betting in most states.
The firms said the deal will result in annual savings worth around $65 million for the year from 1 July.
Peter Jackson, chief executive of Flutter, said: “Our acquisition of FanDuel in 2018 is one of the most transformational events in our group’s history, with its natural competitive advantages combined with access to Flutter Edge capabilities driving impressive growth to become the well-established and clear leader in US online sports betting and iGaming.
“I am really pleased to drive future value for our shareholders by increasing our ownership of FanDuel to 100%.
“Boyd have been fantastic partners for FanDuel, and we are delighted to be extending our important strategic partnership through to 2038.”
FanDuel was founded Nigel and Lesley Eccles, and their friends Tom Griffiths and Rob Jones. It was based in Edinburgh’s Quartermile and became Scotland’s first unicorn – a $1 billion dollar-valued startup. They fought a long legal battle in US to overturn bans on gambling in some states.
Its sale marked a further period of controversy. When it was sold to what was then Paddy Power Betfair the company was valued at $565m.
Under the merger terms the preferred shareholders were entitled to the first $559m. This left common shareholders, including the founders, with nothing.
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