Flutter Entertainment, owner of powerhouse U.S. mobile sportsbook FanDuel, will move its primary listing from the London Exchange to the New York Stock Exchange after 98% of the shareholders approved the move.
Let’s take a further look into Flutter’s strategy and how it may impact top-rated sportsbooks.
Move Approved
Dublin-based Flutter Entertainment made a wise decision when it purchased FanDuel in 2018, adding value to its portfolio of upper-echelon gaming companies that also include Paddy Power, PokerStars, Sky Betting and Gaming, Sportsbet and Betfair.
Recently, industry rumors began circulating that Flutter, which had a secondary listing on the NYSE, was going to move its primary listing overseas as well. Those rumors proved to be accurate after Flutter asked its shareholders to decide and they overwhelmingly approved the shift to the NYSE with 98% of the vote, easily surpassing the 75% threshold needed to make the move.
Flutter’s Big Apple Adventure
FanDuel has had a dramatic impact on Flutter’s success, contributing as much as 40% of the parent company’s revenue. Therefore, it is not surprising that the company dubbed the New York Stock Exchange its “natural home”. The move was precipitated by Flutter CEO, Peter Jackson, sending a letter to shareholders supporting the move to the world’s financial epicenter.
The shift to the NYSE is expected to occur on May 31st, which means it will no longer be included in UK stock indices like the FTSE 100. Flutter chairman John Bryant said its standard listing in London would remain “for as long as it is considered to be in the best interests of Flutter and Flutter shareholders as a whole.”
Flutter Execs Support Decision
The Flutter C-suite was fully in support of the primary listing move to the NYSE and the writing was on the wall back in January when CEO, Peter Jackson, talked about a potential move from the London Exchange to the New York Stock Exchange, saying, “When I look at the volumes of trading that I see in the States, it’s significantly higher than we see on a European exchange. With those higher volumes, you’ll see investors being able to take bigger positions in a US business.”
And then again in March, Mr. Jackson said, “We have FanDuel, and we want to make sure that our customers are able to buy shares in the company that owns their favorite entertainment provider.”
“Once they (investors) see some reporting in US GAAP, these are the codes and the language they understand. We hope that will facilitate new investors into Flutter,” Jackson added.
From London Lull to NYSE Buzz
The shift in exchanges is likely to boost Flutter’s trade valuation and Ed Birkin, senior analyst at H2 Gambling Capital, believes it was a shrewd and strategic decision to bring Flutter Entertainment to the NYSE.
There are few opportunities for US investors to get materially exposed to the growth of the US online sports wagering or iGaming market. DraftKings is the main opportunity,” says Birkin.
“While Flutter isn’t a US online pureplay investment, it has meaningful exposure to the market. That is likely to be of genuine interest to investors,” he added.
