Flutter Lists on NYSE Targets DraftKings on Sports Betting Market Share

Jan 29, 2024

FanDuel parent Flutter has taken the fight to sports betting king Draft Kings with a secondary listing on the New York Stock Exchange. The listing in the US follows a primary listing on the London Stock Exchange. The stock is to trade in the US under the ticker name FLUT.

Flutter NYSE Listing

Following listing on the NYSE, Flutter is to delist its shares from trading on the Euronext Dublin. The delisting is aimed at minimizing regulatory complexity. Additionally, the delisting will make the stock ineligible for inclusion on the Euro Stoxx 50 index. However, Flutter will remain domiciled in Ireland for tax purposes.

With the new listing, the company positions itself to target investors with deeper capital. The listing is also expected to make Flutter more accessible to Institutional investors, marking an important milestone in its history.

Listing in the US is of significance given that it is its biggest market for revenue and growth. FanDuel commands a significant market share in the US, accounting for 43% of gross revenue and 51% based on net revenue. Nevertheless, the company faces stiff competition from DraftKings, which grabs all the headlines and spotlight in the sports betting arena.

Shares of DraftKings rallied by more than 150% over the past 12 months, outperforming the S&P 500 that finished the year up 24%. In addition, the stock is up by about 9% for the year as it benefits from strong consumer spending power. Nevertheless, Flutter has set out to steal some of the glory and some of the capital as the industry grows.

Analysts at research firm Jefferies have already echoed their bullish thesis on Flutter listing on the NYSE. The analysts expect the NYSE listing to act as a short-term catalyst for Flutter, given that DraftKings enjoys a 20% premium after the explosive run last year. Currently, Flutter trades on the London Stock Exchange at about £163. Given FanDuel’s sustained market outperformance, a 20% premium could see the stock trading at about £210.

Flutter Prospects

One of the reasons Flutter could end up outperforming is the fact that its sales have grown at an impressive rate. While DraftKings has exploded in recent months, its profits have lagged behind an underperformance that the market has continued to shrug. Consequently, there is belief that if FanDuel keeps up the momentum on earnings growth, it could end up enjoying a much higher premium compared to DraftKings.

FanDuel has also succeeded in shrugging off stiff competition from other competitors that have become profitable but have yet to gain significant market share. For instance, BetMGM, owned by MGM Resorts International and Entain, has seen its market leader status dwindle in the iGaming or online casino games sector.

Nevertheless, FanDuel will have to up its game to continue outperforming on the earnings front. Caesars Sportsbook, the newly launched ESPN Bet, and Fanatics Sportsbook, headed by former FanDuel CEO Matt King, are increasingly plotting to take market share from the market leaders.

FanDuel CEO Amy Howe insists they are more than ready to take on their well-capitalized competition. The fact that the sports betting market is valued at more than $37 billion also presents tremendous opportunities that all the players can tap into.

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