FanDuel-father Flutter listed on the New York Stock Exchange on Monday, offering American investors an alternative to the biggest pure play in sports betting, DraftKings.
This is a secondary listing for the international bookmaker, which will maintain its primary listing on the London Stock Exchange and be included in the FTSE 100 index.
But the most important market for Flutter's revenue and growth is the United States, where FanDuel is the market share leader. In the fourth quarter, FanDuel had a 43% market share based on gross revenue and 51% based on net revenue.
But while FanDuel outperforms its competitors, its biggest rival, DraftKings, is grabbing headlines and media attention as the largest (some might say the only) publicly traded pure sports betting game. DraftKings stock has soared more than 150% in the past 12 months and is up 9% so far this year.
Flutter wants some glory and some capital for FanDuel. His shares will be listed on the New York Stock Exchange under the symbol FLUT.
Flutter CEO Peter Jackson put it more diplomatically on January 18, saying: “The additional listing will allow us to access deeper capital markets, as well as making Flutter more accessible to US investors and brand a new chapter in the history of the Flutter Group.”
Jefferies believes that a NYSE listing could be a short-term catalyst for Flutter. In a note published on Friday, analyst James Wheatcroft assumes a 20% premium to DraftKings' valuation, due to FanDuel's “sustained market share outperformance” and implies a £210 price target. Flutter is currently trading at £163 per share in London.
While DraftKings has gained momentum since its public listing via SPAC in April 2020, hitting an all-time intraday high of $74.38 on March 22, 2021, it has lagged FanDuel in releasing earnings.
Other competitors have become profitable in certain sectors, although they have failed to gain significant market share. BetMGM, jointly owned by MGM Resorts International and Entain, has seen its status as the market leader in iGaming (online casino gaming) fall as DraftKings and FanDuel have overtaken it.
Caesars sports bets, Penn Entertainment Recently relaunched ESPN Bet and Michael Rubin's Fanatics Sportsbook, headed by former FanDuel CEO Matt King, also intend to take part in FanDuel and Draftkings.
FanDuel CEO Amy Howe told CNBC in October at the Global Gaming Expo in Las Vegas that the company is ready to take on its well-capitalized competition.
“We know that scale is going to matter. And we know that having the most distinctive product is also going to matter,” he said.
Flutter will delist its shares on Euronext Dublin to minimize regulatory complexity, although Flutter will remain incorporated in Ireland for tax purposes, according to the company's website. Delisting makes it ineligible for inclusion in the Euro Stoxx 50 index.
