Online gambling industry investors watched at 9:30 a.m. on Monday, Jan. 29, as FanDuel’s parent company joined the New York Stock Exchange (NYSE). Dublin-based Flutter Entertainment now trades on the NYSE under the stock symbol FLUT.
That means the parent company of the No. 1 US online sportsbook and the No. 2 US online casino now trades in the country where the FanDuel apps dominate. FanDuel Sportsbook holds 43% of the market share, and FanDuel Casino controls 26% as of Q4 2023.
Contrary to popular belief, this is not a FanDuel stock listing. While FanDuel is Flutter’s top US brand, the online gambling company’s American portfolio includes PokerStars and TVG.
FLUT noticeably debuted before the Feb. 11 Super Bowl. The matchup between the San Francisco 49ers and the Kansas City Chiefs is expected to be a huge sports betting event that will likely add to FanDuel revenue.
Also, following the theory that a rising tide lifts all boats, as the NYSE stock climbed, so did the London listing (Flutter Entertainment 25,51 0,00%). However, Flutter ceased trading on Jan. 23 and discontinued its listing on Jan. 29 on Euronext Dublin.
After the US stock was three hours old, FLUT rose 1.86%, according to CNBC.
For now, the NYSE is Flutter’s secondary listing. However, Flutter may flip its London Stock Exchange listing to that spot in Q2 or Q3 2024. Whether that happens is up to shareholders.
Perhaps the first time the public heard there might be a US Flutter listing was on Nov. 16, 2022. That’s when an audience member attending Flutter‘s FanDuel Capital Markets Day in Manhattan asked if there would be a US stock listing. The panel didn’t laugh at the idea.
Meanwhile, previous talk about a possible FanDuel IPO stopped. From about March 2021 to October 2022, Flutter considered taking its top US online gambling app public but cooled on the idea when the economy dipped.
Hopes for FanDuel IPO Dashed
While no FanDuel IPO is forecast, Flutter CEO Peter Jackson clarified that FanDuel was responsible for the NYSE listing.
Jackson said on Jan. 29 in a company statement:
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.
The Flutter statement adds:
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
• Providing greater overall liquidity in Flutter shares
• Giving optionality to pursue a primary listing in the US — one of the criteria for access to important US indices
About the Author
