How Deep Is Your Love, Flutter Goes All-in On America

Pursued by the twin Furies of greater regulatory oversight and the growing kick-back against problem gambling in its native European backyard, Flutter Entertainment–the Irish and UK-origin betting powerhouse behind US sportsbook sensation FanDuel and iconic Paddy Power–has decided to go All-in on America and shift its primary stock exchange listing to New York’s Wall Street, and away from the City of London.

The move, which could be completed this very year, will give Flutter “access to much deeper capital markets”, the gambling group, headed by CEO Peter Jackson, said in a statement this week after it dual-listed on the NYSE.

It comes as a major blow to London’s ailing, post-Brexit stock market.

With a valuation of around £29 billion (US$36.76bn), Flutter is one of the FTSE 100’s top 20 companies.

Flutter can remain part of the LSE as a secondary listing, after New York, but it will have to relinquish its prestigious FTSE 100 status.

“We believe a US primary listing is the natural home for Flutter,” said Jackson (pictured above).

“[The plan] has received very supportive feedback from investors and shareholders,” underlined the chief executive.

Flutter’s FanDuel sportsbook has emerged as the super hot contender to dominate sports betting in the booming US digital iGaming market since PASPA, the Professional and Amateur Sports Protection Act of 1992, was repealed in 2018.

In the final quarter of last year, Flutter’s US revenue rose 26 percent, year-on-year, to £1.14 billion (US$1.44bn); almost double the £647 million (US$820.34m) generated in its home Irish and UK markets.

The Duellists

FanDuel is now duelling with Massachusetts-founded DraftKings for leadership of the US online sports betting market, now legal in around 30 of the 50 US states and bracing for the full impact of a big new entrant, Walt Disney-owned ESPN BET.

“The European gambling industry is facing greater and greater regulation and stronger and stronger calls to tackle problem gambling,” a top iGaming observer told iGamingFuture.

“In so many ways Flutter has been leading the Safe and Responsible Gambling charge. But shifting focus across the pond to North America, the land of runaway wealth makes so much sense.”

Affirmed CEO Jackson : “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 Number One position in the US, a market which we expect to contribute the largest proportion of profits in the near future.”

The decision on whether to make Wall Street Flutter’s primary stock market listing will be made at the company’s AGM, scheduled to be held this May.

For the moment, only a fool wouldn’t fancy a Flutter.

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