Flutter, the parent company of FanDuel, made its debut on the New York Stock Exchange (NYSE) on Monday, providing American investors with an alternative option in the sports betting industry. While the company already holds a primary listing on the London Stock Exchange and is included in the prestigious FTSE 100 index, its focus on the United States makes this secondary listing a significant move. FanDuel, the market leader in the US with a 43% share of gross revenue and 51% share of net revenue in the last quarter, has consistently outperformed its competitors. However, DraftKings, its biggest rival and the only other publicly traded pure play in the sports betting sector, often dominates media attention. By venturing onto the NYSE, Flutter aims to attract both the limelight and capital for FanDuel. Trading under the ticker symbol FLUT, Flutter seeks to tap into deeper capital markets and enhance accessibility for US investors.
Jefferies, a prominent financial services company, believes that Flutter’s NYSE listing could serve as a short-term catalyst for the company’s growth. In a recent note, analyst James Wheatcroft forecasts a 20% premium to DraftKings’ valuation, attributing it to FanDuel’s sustained market share outperformance. Based on this analysis, Wheatcroft suggests a price target of £210, while Flutter’s current share price in London stands at £163. Flutter’s aim is to capitalize on FanDuel’s success and build momentum in the US market, leveraging the newfound exposure and accessibility provided by the NYSE listing.
While DraftKings has experienced significant growth, with its shares surging over 150% in the past year and a 9% increase year-to-date, it falls short of FanDuel’s profitability. Despite achieving profitability in certain quarters, DraftKings has been unable to surpass FanDuel’s market share. Furthermore, other competitors such as BetMGM, Caesars Sportsbook, ESPN Bet (owned by Penn Entertainment), and Fanatics Sportsbook (led by former FanDuel CEO Matt King) are intensifying the competition by vying for a larger share of the market. Flutter’s move to the NYSE reflects its determination to stay ahead and fend off the mounting pressure from its rivals.
According to Jefferies’ estimates, the US sports betting industry represents a total addressable market of $37.5 billion. With such vast potential, FanDuel CEO Amy Howe emphasizes the importance of scale and product distinctiveness in capturing market share. FanDuel is well-positioned to take on its well-capitalized competition, with its proven track record and strong brand presence. By expanding its reach and visibility through the NYSE listing, Flutter aims to solidify its position as a leading player in the US sports betting industry and capitalize on the immense growth opportunities it presents.
As part of its NYSE listing, Flutter plans to delist its shares from trading on the Euronext Dublin to simplify regulatory procedures. However, the company will remain incorporated in Ireland for tax purposes. While this move eliminates the possibility of Flutter’s inclusion in the Euro Stoxx 50 index, it streamlines its operations and allows the company to focus on its strategic expansion in the US sports betting market.
Flutter’s secondary listing on the NYSE marks a significant milestone for the company and its subsidiary, FanDuel. By stepping into the American stock market, Flutter aims to challenge DraftKings’ dominance and attract capital for further growth. With its exceptional market share and proven profitability, FanDuel is well-positioned to drive Flutter’s success in the highly competitive US sports betting industry. As Flutter’s journey in the US unfolds, it will be intriguing to witness how the company leverages its newfound exposure and capital to solidify its position in the market.
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