In a bid to cement its position in the rapidly growing US gambling market, Flutter is now trading on the New York Stock Exchange. This pivotal moment culminates a strategic plan executed over the last five years of gradually spreading its roots in the US.
Flutter Entertainment, the parent company of FanDuel, formally enlisted in the New York Stock Exchange effective Monday, 29th January, under the FLTR ticker symbol. The company got off to a great start in the market, with its shares up 1.4% on its first day of trading. Listing in the US signaled the effective end of the company’s trading on the Euronext Dublin exchange.
Be that as it may, the company still intends to continue trading on the London Stock Exchange. The move to the US listings is designed to increase the company’s profile in the burgeoning US gambling market. Of course, Flutter also hopes to leverage and gain more money as a result of trading in the NYSE.
Peter Jackson, the Flutter CEO, commented:
Quote“With our NYSE listing effective today, 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 #1 position in the US, a market which we expect to contribute the largest proportion of profits in the near future.”
Flutter’s Growth in the US
It’s easy to see why the higher-ups of this gaming giant thought of listing in the NYSE. Flutter’s performance in one of the largest gambling markets globally has been outstanding, to say the least. According to the company’s 2023 update released earlier this month, Flutter had achieved a 25% year-on-year growth in revenue to the tune of £9.5 billion (~$12.07 billion). The notable increase was mainly spurred by revenue from the US market, which experienced a 38% rise.
To appreciate the level of growth that the company has experienced in the US, you’ll have to go back to 2018, after the repeal of PASPA, when Flutter generated sales in the region of $243 million. Now, half a decade later, that figure had ballooned to $4.59 billion in 2023. Five years ago, when Flutter still went by the name Paddy Power Betfair, the US only contributed 10% of the company’s sales. It was then an accepted fact that the company was majorly leaning towards the European market, at least in terms of the sales it was pulling. That isn’t the case anymore, and there’s a realization that the US market will soon give the company’s European market a run for its money.
Furthermore, FanDuel, Flutter’s biggest subsidiary, is thriving in the US. The operator occupied an impressive 51% market share as of Q4 2023. Turning our comparison scales to gross revenue, FanDuel’s market share of 43% is impressive but slightly falls below that of its fierce national competitor, DraftKings. DraftKings’s fantastic performance nationwide can be attributed to its spirited efforts in New York, which has taken the iGaming world by storm since iGaming was launched in the state.
With its entry into the NYSE, the company hopes to leverage an ever-growing market where 36 states across the US and Washington have already legalized sports betting. Thus, Flutter believes that this number will continue to rise as other key states, such as Texas, are taking steps to legalize sports betting. As such, from an outsider’s perspective, its positioning in the US market is for sure a well-thought-out move.
In its last filing, Flutter had expressed its eagerness to get things rolling in the NYSE. The company, however, pointed out that some social responsibility concerns in the iGaming scene could likely influence new policies implemented by US regulators. Flutter thus feared the newly developed responsible gambling regulations, long-drawn-out investigations, and litigations could significantly impact its reputation.
All said and done, the stats back up Flutter’s move to the NYSE, seeing how great the US sports betting scene is doing. The gaming leviathan noted that US sports betting revenue had jumped 39%, and casino gaming registered a 47% year-over-year growth. Additionally, the company also took note of the 38% increase in average monthly players to more than 3.2 million players.
Flutter’s Possible Impact On the Competition
While there is general optimism about the prospects of Flutter in the US, it is also fair to acknowledge the intense competition in the country. Thus, during the company’s post-close trading update for its 2023 calendar year results, it recorded growth in many areas, particularly in Q3 2023. However, Flutter’s revenue target in Q4 was missed by a whopping £147 million, and the company’s CEO, Peter Jackson, cited the strong competition in the US market as the reason for this. He said in a Statement:
Quote“From a competitive intensity perspective, every year is competitive… The launch of the football season, new competitors out there- there’s Fanatics, ESPN, we’ve had Caesars, BetMGM- Over the years, we’ve had a lot of competitors.”
Industry insiders, however, aren’t worried for the likes of DraftKings after Flutter’s entry into the NYSE. It will take a lot for DraftKings’ strong position to be shaken, given the strong foundations it has dug in the American gambling scene. DraftKings investors can also celebrate the news that the sportsbook is working on a lucrative deal with Barstool, a subsidiary of PENN Entertainment. Nonetheless, while DraftKings’ strong position in the US isn’t in question, analysts have urged caution on its part as Flutter’s inroads into the American market simply cannot be ignored.
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