Flutter Entertainment, owner of FanDuel, has now launched on the New York stock exchange, hailing the move as a ‘pivotal moment’ as it finds its ‘natural home’ for its burgeoning US sports betting business.
Flutter generated sales of £3.6bn in the US last year, increasing from £191m in 2018. It sees itself now perfectly positionned for a ‘long runway of growth’ as it looks to take on DraftKings and BetMGM in North America’s sportsbetting sector.
The company also confirmed the cancellation of the secondary listing of the company’s ordinary shares on Euronext Dublin. Flutter retains its premium listing on the London Stock Exchange.
As outlined in February 2023, the Board believes listing on the NYSE will unlock long-term strategic and capital market benefits by enhancing the group’s profile in the US, better enabling the recruitment and retention of US talent, giving the group access to much deeper capital markets, and to new US domestic investors and providing greater overall liquidity in Flutter shares.
Since February 2023, management has engaged widely with US investors, existing and potential, along with existing shareholders globally. The feedback received has been very supportive of moving Flutter’s primary listing to the US.
As a result, the Board believes that the NYSE is now the optimal location for Flutter’s primary listing of its shares, and that the transition should be made as soon as practicable. This proposal will be put to shareholders as a Special Resolution at the 2024 AGM on 1 May 2024. Subject to shareholder approval, the transition is expected to become effective in late Q2/early Q3.
Following transition, the Board intends to retain Flutter’s UK listing as a secondary listing and believes this will ensure the greatest number of investors will be able to continue to hold Flutter shares and benefit from future value creation. Further details will be communicated in due course ahead of the AGM.
Peter Jackson, Chief Executive, commented: “With our NYSE listing effective today, this is a pivotal moment for the Group as we make Flutter more accessible to US based investors and gain access to deeper capital markets. We believe a US primary listing is the natural home for Flutter given Fanduel’s #1 position in the US, a market which we expect to contribute the largest proportion of profits in the near future.”
FanDuel, with rival operators DraftKings and BetMGM, has led the sharp-elbowed race to dominate the nascent US online gambling market.