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FanDuel has become the top revenue generating sportsbook in the U.S., but a long running Fox option still hangs over Flutter. That right covers 18.6% of FanDuel and keeps a big variable in play for valuation, strategy, and licensing.
Good to Know
FanDuel gives Flutter its strongest U.S. growth engine, yet part of that upside could still go elsewhere. Under terms tied to the 2019 acquisition of The Stars Group, Fox holds an option to buy 18.6% of FanDuel, and it can only exercise that right in full.
That matters because FanDuel has become central to Flutter. Since Flutter bought FanDuel in 2018, the brand has grown into the top revenue producing sportsbook in the country, while mature markets such as Ireland and the U.K. have slowed. In simple terms, FanDuel now does a lot of the heavy lifting for the wider group.
Flutter spelled out the risk again in its 2025 10-K. The company said: “In the event that Fox exercises the Fox Option, we would be required to sell to Fox a significant minority stake in our FanDuel business.” It added: “If at that point Fox’s consent is required for certain actions we wish to take and we are unable to obtain it, we may not be able to pursue elements of our business strategy.”
The price is no small detail. After arbitration between the companies, Fox gained the right to buy that 18.6% stake at a fixed price that reached $4.8 billion as of December 31, 2025, with a 5% annual compounding increase if Fox waits. Fox has until December 2030, must pay in cash, and would need gaming licenses to complete the deal.
Right now, that setup does not make an immediate deal look easy. Flutter had a market value of about $20 billion in early April 2026, close to where it sat when the arbitration value was set in 2023, according to the source material you provided. At that level, Fox would not be looking at much direct upside from exercising the option.
Still, the overhang remains. If FanDuel value climbs faster than the 5% yearly increase in the strike price, the economics get more attractive for Fox. That means some future upside in FanDuel is effectively capped from Flutter side, because Fox already holds a path to buy in at a preset formula.
There is also an operating angle. A Fox stake close to 20% would not only affect valuation math. It could also affect decision making inside FanDuel if consent rights come into play. Flutter made clear that such a setup could limit parts of its wider business plan.
Licensing adds another layer. FanDuel offers sportsbook, online casino, and daily fantasy sports products across more than two dozen U.S. states. Fox would need approvals across those gaming markets before it could step in as an owner. Fox has already had one direct betting run in the market through Fox Bet with The Stars Group, but that brand shut down in 2023 after staying below 1% of national market share.
Another open question sits outside the balance sheet. It is still unclear how any future Fox stake would connect with Fox sports media assets. That matters in a market where media and betting ties are already common. DraftKings, for example, works with ESPN as a sponsor and odds provider.
Flutter also tightened its grip on FanDuel in 2025 by agreeing to buy the 5% stake held by Boyd at an implied FanDuel valuation of about $31 billion. That deal underlined how valuable the asset has become, and why the Fox option keeps coming back into focus.