Parent of FanDuel flickering listed on the New York Stock Exchange on Monday, offering American investors an alternative to the biggest pure play in sports betting, DraftKings.
It is a secondary listing for the International Sports Exchange, which will retain its primary listing on the London Stock Exchange and inclusion in the FTSE 100 index.
But Flutter’s most important market for revenue and growth is the United States, where FanDuel is the market share leader. In the fourth quarter, FanDuel had 43% market share based on gross revenue and 51% based on net revenue.
Former NFL tight end Rob Gronkowski celebrates the IPO of Flutter Entertainment, the parent company of FanDuel, on the floor of the New York Stock Exchange (NYSE) on January 29, 2024 in New York.
Spencer Platt | News from Getty Images | Getty Images
But while FanDuel outperforms its competitors, its biggest rival, DraftKings, grabs the headlines and the spotlight in the earned media as the largest — some might argue the only — publicly traded pure play in sports betting. Shares of DraftKings have jumped more than 150% over the past 12 months and are up 9% year to date.
Flutter wants some of the fame and some of the equity for FanDuel. Its stock trades on the NYSE 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 make Flutter more accessible to US investors and marks a new chapter in the story of the Flutter Group. “
The New York Stock Exchange welcomed Flutter Entertainment (NYSE: FLUT ) on January 29, 2024, in celebration of its listing.
NYSE
Jefferies believes the NYSE listing could be a near-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 suggests a price target of £210. Flutter is currently trading at £163 per share in London.
Although DraftKings gained momentum after its public listing through a SPAC in April 2020, hitting a record intraday high of $74.38 on March 22, 2021, it lagged behind FanDuel in posting earnings.
Other competitors have become profitable in certain quarters, although they have not been able to gain significant market share. The status of BetMGM, jointly owned by MGM Resorts International and Entain, weakened after DraftKings and FanDuel overtook it.
People walk past a banner outside the New York Stock Exchange (NYSE) for the IPO of Flutter Entertainment, the parent company of FanDuel, on January 29, 2024 in New York.
Spencer Platt | Getty Images
Caesars sportsbook, Penn Entertainment’s recently revamped ESPN Bet and Michael Rubin’s Fanatics Sportsbook, headed by former FanDuel CEO Matt King, also intend to take a stake in FanDuel and DraftKings.
Jefferies now estimates the sports betting industry at $37.5 billion in total addressable market in the United States.
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 scale will matter. And we know that having the most distinctive product will matter,” she said.
Flutter will delist its shares from trading on Euronext Dublin to minimize regulatory complexity, although Flutter will remain registered in Ireland for tax purposes, according to the company’s website. The delisting makes it ineligible for inclusion in the Euro Stoxx 50 index.
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