Sportsbook Operator FanDuel’s Owner to Pursue US Listing

By Todd Winkler,
Editor at online-gambling.com

Todd Winkler Editor at online-gambling.com

Todd Winkler is another one of our highly professional editors at online-gambling.com. The expert has been part of our team for 6 years, during which time he contributed articles regarding poker, blackjack, and DFS. Winkler is also knowledgeable about New Zealand's legal gambling market.

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Last updated: April 29, 2023

The majority of the investors in Flutter Entertainment, the Irish sportsbook operator and proprietor of FanDuel, supported its efforts to pursue a New York stock exchange listing. The decision was approved by 99.99% of investors during the company’s annual meeting on Thursday. FanDuel’s 95% owner Flutter intends to float its stock in the US as early as the fourth quarter.

The decision by Flutter to pursue a US listing is not surprising given that FanDuel, the country’s largest online sportsbook provider, has experienced exponential growth in recent years. FanDuel, which ranks as the third-largest online casino operator in the nation, already owns around half of the US mobile sports betting market, thus the move is considered as reasonable. Increased capital access and a broader investor base that includes institutional and retail market participants will be advantageous to Flutter.

The decision to pursue a US listing may also reduce shareholder demands for FanDuel to be spun off in part. According to the corporation, the US listing would take precedence over such a sale. Flutter would be the second-largest gaming firm trading in the US, behind only Las Vegas Sands (NYSE: LVS), with a current market capitalization of $35.27 billion. Given that Flutter’s market valuation is more than treble that of competitor DraftKings, it would be safe to say that it would have the largest sports betting/iGaming equity listed in New York.

Sportsbook Operator FanDuel’s Owner to Pursue US Listing

Whether Flutter’s stock will trade on the Nasdaq or the New York Stock Exchange has not yet been made public. The closest publicly listed competitor to FanDuel is DraftKings, which trades on the Nasdaq. The choice will be based on the costs and specifications of each transaction as well as the bankers’ recommendations. When it goes ahead with a US stock listing, Flutter said its main office will remain in Dublin.

There are worries that Flutter’s intention to pursue a US listing may cause businesses to leave London. With its primary stock listing on the London Stock Exchange (LSE), where it is a constituent of the FTSE 100 Index, Flutter now trades over the counter in the US. Even if it issues its shares in the US, Flutter has told its investors that its headquarters would stay in Dublin. However, it’s rumored that the Betfair owner’s pursuit of a New York share listing will prompt businesses to leave London, potentially weakening the influence of what has long been the continent’s financial center.

Concerns Grow Over Potential Impact on London’s Financial Sector

Observers of the UK financial sector are growing increasingly anxious that the LSE may lose out on high-profile listings as a result of venture capitalist Softbank choosing to list UK semiconductor company Arm Holdings in New York rather than London. At least one more business is rumored to be considering switching from a London to a New York listing, and many more are apparently thinking about doing the same.

The decision by Flutter to pursue a US listing is not without danger. It must make sure that it complies with US laws and the strict standards of the US Securities and Exchange Commission (SEC). Additionally, it will need to establish a reputation and attract US investors who might not be familiar with the business.