FanDuel-parent Flutter lists on the Recent York Stock Exchange Monday, offering U.S. investors a substitute for the largest pure play in sports betting, DraftKings.
It is a secondary listing for the international sportsbook, which can retain its primary listing on the London Stock Exchange and included within the FTSE 100 index.
But Flutter’s most vital marketplace for revenue and growth is the USA, where FanDuel is the market share leader. Within the fourth quarter, FanDuel had 43% market share based on gross revenue and 51% based on net revenue.
But while FanDuel outperforms its competitors, its biggest rival DraftKings grabs the headlines and highlight in earned media as the largest (some might argue, the one) publicly traded pure play in sports betting. Shares of DraftKings have soared greater than 150% during the last 12 months and are up 9% yr thus far.
Flutter wants a number of the glory and a number of the capital for FanDuel. Its shares will trade on the NYSE under the ticker symbol FLUT.
Flutter CEO Peter Jackson put it more diplomatically on Jan. 18, saying, “The extra listing will enable us to access deeper capital markets in addition to making Flutter more accessible to U.S. investors and marks a latest chapter within the history of the Flutter Group.”
Jefferies believes the NYSE listing may very well be a short-term catalyst for Flutter. In a note published Friday, analyst James Wheatcroft assumes a 20% premium to DraftKings’ valuation, due to FanDuel’s “sustained market share outperformance” and implies a price goal of £210. Flutter is currently trading at £163 per share in London.
While DraftKings has gathered 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 posting profits.
Other competitors have turn out to be profitable in certain quarters, though they’ve failed to realize significant market share. BetMGM, jointly owned by MGM Resorts International and Entain, has seen its market leader status in iGaming (online casino games) slip, as DraftKings and FanDuel have overtaken it.
Caesars Sportsbook, Penn Entertainment’s newly relauched ESPN Bet and Michael Rubin’s Fanatics Sportsbook, headed up by former FanDuel CEO Matt King, are also intent on taking share from FanDuel and Draftkings.
FanDuel CEO Amy Howe told CNBC in October on the Global Gaming Expo in Las Vegas that the corporate is able to tackle its well-capitalized competition.
“We all know the dimensions goes to matter. And we all know that having essentially the most distinctive product goes to matter,” she said.
Flutter will delist its shares from trading on the Euronext Dublin to reduce regulatory complexity, though Flutter will remain incorporated in Ireland for tax purposes, in accordance with the corporate’s website. The delisting makes it ineligible for inclusion on the Euro Stoxx 50 index.
