Flutter Entertainment Begins Trading on the NYSE

Article by : Erik Gibbs Feb 1, 2024

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Flutter Entertainment made a bold entrance to the NYSE with a prominent poster and banner, signaling its official trading commencement. The company, known for FanDuel, Paddy Power and PokerStars, strategically aimed for a resounding market entry as it began public trading on the US market.

The decision to list on the NYSE by January 29, 2024, represents a pivotal moment in US sports betting investment. Flutter’s move is noteworthy as US-listed stocks generally command higher valuations than those in London, and Flutter’s brand holds significant weight.

This listing is set to enhance Flutter’s position in the US market, aligning with its primary revenue source and attracting investor interest amid the growing online sports wagering and iGaming market.

The strategic move reflects a pragmatic approach, anticipating significant growth, higher valuations and enhanced liquidity. Listing on the NYSE is attractive to investors seeking the next big opportunity, potentially drawing funds with the flexibility to diversify investments.

The NYSE listing expands Flutter’s reach to a broader investor base, positioning the company in the competitive US market alongside major players like DraftKings and BetMGM.

The impact on competitors may not be seismic, but it could attract investor attention, making it easier to compare businesses like FanDuel and DraftKings due to altered accounting standards.

Ultimately, a company’s success is driven by product and technology offerings, as well as effective marketing and promotions, with less emphasis on the location of the listing.

Flutter is approaching its US transition with utmost seriousness, proposing a primary listing on the NYSE, subject to shareholder approval at the 2024 AGM on May 1. The potential transition is expected in Q2 or Q3.

Despite the perceived benefits of a US listing, particularly on market share, Ed Birkin, senior analyst at H2 Gambling Capital, suggests that Flutter’s existing market-leading position, exemplified by FanDuel’s US base, diminishes the need for additional investment to drive market share.

The recent release of Flutter’s full-year 2023 results highlights the consistently positive performance in the US throughout the year, especially in terms of net wins.

Flutter, with its newfound opportunities in the wake of the listing, appears to have ambitious plans for the US in 2024.

This strategic approach echoes successful models witnessed in various markets, with Paddy Power’s growth in the UK and William Hill’s online expansion being notable examples.

Birkin envisions that FanDuel, an established leader in US sports betting, will traverse a similar trajectory—sustaining sports wagering market leadership while propelling overall business growth through an amplified presence in the iGaming market.

Recognizing the significance of scale, he anticipates that the established scale in sports will naturally translate into gains in the iGaming domain.