Global betting giant Flutter, the parent company of FanDuel, has officially listed on the New York Stock Exchange (NYSE) as of last Monday, in a clear statement of intent to capitalize on its growing prominence in the US betting market.
CEO Peter Jackson also stated that Flutter – which also owns brands including Paddy Power, Betfair, and PokerStars – planned to migrate its primary listing from the London Stock Exchange (LSE) to New York later this year, pending shareholder approval.
The US iGaming market has been a complete game-changer for Flutter since the Supreme Court’s decision to overturn a federal ban on sports betting. Just days after the May 2018 ruling, Flutter – then known as Paddy Power Betfair – acquired FanDuel in a bid to break into the emerging US market.
Ever since then, FanDuel has become the torchbearer for its global operations in what is a thriving, if not fiercely competitive, American sports betting marketplace. No doubt underscored by the fact that the FanDuel betting platform generated over 40% of Flutter’s global revenues, a significant reorientation of the company’s income streams.
Unsurprisingly, Flutter’s US revenues have already exceeded all expectations, from its initial profit of $243 million in 2018 to over $4.59 billion last year. An eye-water figure that not only mirrored the exponential growth of the US gaming industry but also further enhanced the company’s status on the international stage.
Why the US Move Suits Flutter’s Future Prospects
Flutter’s NYSE listing (FLUT) will now grant them access to the vast liquidity of the US capital markets, ultimately enabling them to tap into a broader range of investment opportunities and financial resources.
After all, Flutter’s decision to prioritize a move to the NYSE also aligns with the US’s broader financial ecosystem, which offers a wealth of economic and geographical advantages.
Most prominent of these is the sheer size of the US stock markets, which eclipses the UK’s LSE in terms of monetary volume while also exposing Flutter to its specialist investor base, which enables firms to raise capital more efficiently.
Given that Flutter is headquartered in Dublin and listed on the London Stock Exchange as part of the FTSE 100 index, the recent cancellation of its secondary listing in Dublin is a clear signal of the company’s strategic focus to transition its operations towards the US market which has arguably the greatest growth potential.
This is reinforced by economists who claim that the US sports betting industry is still in its infancy, with only 36 states and Washington DC to enact the Supreme Court ruling of legalizing the practice so far. With states like California and Texas so far abstaining, it makes them an untapped marketplace, so the opportunity for future growth is inevitable.
Flutters American Dream Won’t Be Plain Sailing
Wall Street analysts have been bullish on Flutter’s prospects given the current industry projections and FanDuel’s competitive edge in the US market.
The scale of Flutter’s US aspirations for enhanced profits may still lie in unlocking key markets such as Texas and California, which, in spite of Californian voters rejecting sports betting legalization back in 2022, Flutter is clearly optimistic about reversing it.
Their optimism likely stems from the company actively pursuing initiatives to bring the issue back to the ballot as a result of the growing popularity of gambling and, more importantly, the unprecedented injection of gambling revenue taxes it would generate for those in charge.
Yet, concerns centering around problem gambling, advertising which has attracted litigation, and potential impact on future US regulation still could threaten Flutter’s revenue generation. However, the industry argues that stricter regulations and heightened scrutiny could universally dent the US gambling industry’s potential and growth trajectory.
There is, of course, the escalating pressure from a variety of organizations advocating diverting gambling tax revenues toward addiction treatment programs, which might stymie the industry’s expansion.
All in all, the NYSE listing represents a significant milestone for Flutter, effectively affirming its status as a dominant global player in the international gambling sector. And, with FanDuel supercharging the company’s good fortunes, Flutter is well-positioned to help shape the future of online sports betting in America.