Flutter Entertainment Plc, the parent company of FanDuel, has announced plans to shift its primary listing from London to New York, hoping to capitalize on the fast-growing US market and attract new retail investors. The Dublin-based gambling giant has scheduled a shareholder vote on 1 May to seek approval for the move.Β
The Move Should Bolster Investor Confidence
This strategic decision aims to consolidate the companyβs dominant position in the US online gambling market, leveraging its ownership of FanDuel, a leading online sports betting brand in the country. Flutter Entertainment is already the worldβs largest online gambling group by market capitalization and holds a secondary listing on the New York Stock Exchange (NYSE).
Flutter Entertainment CEO Peter Jackson highlighted the significance of the US retail investor base, emphasizing the importance of providing clear and regular data to interested parties. He noted that the proposed shift to the NYSE would resonate with US investors, facilitating a better understanding of the companyβs performance and dissipating potential concerns.
We have FanDuel, and we want to make sure our customers are able to buy shares in the company that owns their favorite entertainment provider.
Peter Jackson, Flutter Entertainment CEO
Flutterβs move comes amid its strong financial performance, with FanDuel delivering positive US full-year adjusted EBITDA for the first time in 2023. The company aims to further capitalize on its leading position in the US market, which has experienced significant growth since the 2018 Supreme Court ruling that lifted the federal ban on sports betting.
Flutter Remains Well-Positioned for Sustained Growth
The US online gambling industry is projected to grow at an annual rate of 12% between 2024 and 2030, with Flutter and other established players like DraftKings benefiting from this expansion. Despite the enormous potential, competition remains fierce, with newcomers like ESPN BET aiming to disrupt the status quo and secure a market share.
Flutterβs shift to the NYSE reflects a broader trend of UK companies seeking lucrative trading opportunities in the US market. Many businesses that derive a significant portion of their revenue from North America have already made similar moves to tap into the deeper investor pool in the United States.
Flutterβs decision underscores the attractiveness of the US market and the potential benefits of closer alignment with American investors. However, the company must still contend with the countryβs complicated regulatory environment and dedicate time and resources to ensure compliance with local regulations. According to Flutter, the benefits outweigh the risks, so the move will likely receive shareholder approval.