FanDuel parent company Flutter has made its debut on the New York Stock Exchange, providing U.S. investors with an alternative to DraftKings, the prominent player in the sports betting market. Flutter, which already has a primary listing on the London Stock Exchange and is part of the FTSE 100 index, sees the United States as its most vital market for revenue and growth. Despite FanDuel’s superior performance compared to its competitors, DraftKings receives much of the media attention as the only publicly traded pure play in sports betting. Flutter’s move to the NYSE aims to gain recognition and access more capital for FanDuel’s continued success.
Flutter’s CEO, Peter Jackson, has highlighted that the secondary NYSE listing will open doors to deeper capital markets and enhance accessibility for U.S. investors. With FanDuel’s sustained market share dominance, Flutter hopes to achieve the same investment glory as DraftKings. Analyst James Wheatcroft from Jefferies believes the NYSE listing could act as a short-term catalyst for Flutter. Assessing the situation, Wheatcroft suggests a 20% premium to DraftKings’ valuation due to FanDuel’s strong market position, setting a price target of £210. Currently, Flutter shares trade at £163 per share in London.
Chasing After DraftKings
While DraftKings’ public listing through a SPAC in April 2020 has garnered significant momentum, resulting in a record intraday high of $74.38 on March 22, 2021, the company lags behind FanDuel in achieving profitability. Nevertheless, other competitors have managed to obtain intermittent profitability without making substantial gains in market share. MGM Resorts International and Entain’s joint venture, BetMGM, which initially held market leader status in iGaming, has seen its position slip as DraftKings and FanDuel have surged ahead. Additionally, Caesars Sportsbook, ESPN Bet from Penn Entertainment, and Fanatics Sportsbook headed by former FanDuel CEO Matt King are all determined to chip away at FanDuel and DraftKings’ market share.
Jefferies estimates that the sports betting industry in the United States has a total addressable market worth $37.5 billion. FanDuel CEO Amy Howe emphasized the company’s readiness to compete with well-capitalized rivals, recognizing that scale and a distinctive product will be crucial to success. As Flutter makes its mark on the NYSE, it aims to leverage the vast market potential and solidify its position as a key player in the sports betting industry.
Flutter’s decision to delist its shares from trading on the Euronext Dublin exchange is driven by a desire to reduce regulatory complexity. Despite the delisting, the company will maintain its incorporation in Ireland for tax purposes, as stated on its website. This move renders Flutter ineligible for inclusion on the Euro Stoxx 50 index.
Fluttter’s secondary listing on the New York Stock Exchange is a strategic move to tap into the extensive U.S. investor market and gain recognition as a premier player in sports betting. With FanDuel leading the way in market share and revenue, Flutter aims to challenge the dominance of DraftKings. As competitors like BetMGM, Caesars Sportsbook, ESPN Bet, and Fanatics Sportsbook intensify their efforts to capture market share, Flutter’s entry into the NYSE sets the stage for increased competition in the flourishing sports betting industry. Only time will tell if Flutter can successfully carve out its niche in this highly lucrative and rapidly evolving market.
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