Flutter Entertainment, the Irish parent company of FanDuel, has started trading on the New York Stock Exchange (NYSE) today, as it seeks to capitalize on the growing US online sports betting market.
Flutter aims to attract US investors and talent
Flutter, which also owns Paddy Power and Betfair, has listed its shares on the NYSE under the ticker FLUT, making it easier for US investors to buy a stake in the international sportsbook. The company will retain its primary listing on the London Stock Exchange under the ticker FLTR, and has suspended its secondary listing on Euronext Dublin.
Flutter’s CEO Peter Jackson said in a news release that this was a “pivotal moment” for the group, as it makes Flutter more accessible to US-based investors and gains access to deeper capital markets. He also said that the NYSE was a “natural home” for Flutter, given FanDuel’s “#1 position” in the US markets.
The listing on the NYSE could also help Flutter attract and retain US-based talent, as well as improve its brand recognition and profile in the US. Flutter has been expanding its presence and partnerships in the US, such as with Fox Sports, Barstool Sports, and the National Football League (NFL).
Flutter dominates the US online sports betting market
Flutter’s move to the NYSE comes amid a surge in the US online sports betting market, which has been liberalized in many states since the US Supreme Court struck down a federal ban on sports betting in 2018. Flutter acquired a controlling stake in FanDuel shortly after the ruling, and has since become the market leader in the US.
According to its latest earnings report, Flutter generated revenues of £3.6bn ($4.59bn) in the US in 2023, up from £191m ($243m) in 2018. FanDuel had a 51% market share by net revenue and a 43% market share by gross revenue in the US online sports betting segment in the fourth quarter of 2023, ahead of its rivals DraftKings and BetMGM.
Flutter expects the US online sports betting market to grow further, as more states legalize and regulate the activity. The company said in its regulatory filing that it sees “a long runway” for future growth in the US, and that it is pursuing initiatives to enter new states, such as California, which rejected sports betting in 2022.
Flutter faces challenges and opportunities in the US
However, Flutter also faces some challenges and risks in the US, such as increased competition, regulatory uncertainty, legal disputes, and social responsibility issues. The company acknowledged in its filing that concerns around problem gambling could “significantly influence” future regulation of its industry, prompt investigations, and dissuade people from placing bets.
Flutter also said that it could face litigation from third parties, such as competitors, regulators, or consumers, over intellectual property rights, consumer protection, or anti-trust matters. For instance, Flutter is currently involved in a legal battle with Fox Sports over the valuation of FanDuel, which could affect its future ownership and control of the US business.
On the other hand, Flutter also sees some opportunities and advantages in the US, such as its diversified portfolio of brands, products, and markets, its strong customer loyalty and retention, its innovative technology and platform, and its strategic partnerships and alliances. The company said that it aims to leverage its global scale and expertise to deliver value and growth in the US.
