Flutter Off to Solid Start in NYSE Debut

Posted on: January 29, 2024, 01:53h. 

Last updated on: February 3, 2024, 12:54h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Flutter Entertainment (NYSE: FLUT) is off to a decent start on its first day as a U.S.-listed stock.

Sports Betting Stocks
The floor of the New York Stock Exchange. Flutter Entertainment shares started trading there on Monday. (Image: ABC News)

In midday trading, shares of the FanDuel parent are higher by 1.36% on volume, which is slightly more than 318,100 shares. Monday marks the first trading day for the stock on the New York Stock Exchange (NYSE). The U.S. listing arrived about 11 months after the gaming company told investors it was considering such a move. Previously, Flutter shares traded in the U.S. on an over-the-counter (OTC) basis.

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,” said CEO Peter Jackson in a statement. “We believe a U.S. primary listing is the natural home for Flutter given Fanduel’s #1 position in the U.S., a market which we expect to contribute the largest proportion of profits in the near future.”

The Irish gaming company shed its listing on Euronext Dublin in preparation for trading on the NYSE. But it is retaining its listing on the London Stock Exchange (LSE), which will be the secondary venue for the stock.

More on NYSE Being Primary Venue

With FanDuel ranking as the largest online sportsbook operator in the U.S. and a rising force in the iGaming space, Flutter listing its shares in New York is a practical move.

Not only is FanDuel profitable, but it’s expected to account for an increasing percentage of Flutter’s earnings and revenue in the years ahead. It’s also one of the most widely recognized gaming brands among U.S. bettors. The Irish company owns 95% of FanDuel, with regional casino operator Boyd Gaming (NYSE: BYD) controlling the other 5%. Those factors underscore the potential allure of the NYSE being Flutter’s primary listing venue.

“Since February 2023, management has engaged widely with U.S. investors, existing and potential, along with existing shareholders globally. The feedback received has been very supportive of moving Flutter’s primary listing to the U.S.,” according to the statement. “As a result, the Board believes that the NYSE is now the optimal location for Flutter’s primary listing of its shares, and that the transition should be made as soon as practicable. This proposal will be put to shareholders as a Special Resolution at the 2024 AGM on 1 May 2024. Subject to shareholder approval, the transition is expected to become effective in late Q2/early Q3.”

It’s possible that with the NYSE listing, Flutter will be eligible for inclusion in more U.S.-focused equity indexes. However, it remains to be seen if the stock makes it to the S&P 500, which is typically reserved for U.S.-based firms. With a market value of $36.54 billion, Flutter easily meets the S&P 500’s market capitalization requirement, and the FanDuel parent is now the second-largest gaming equity trading in the U.S. behind Las Vegas Sands (NYSE: LVS).

Other Benefits for Flutter

Beyond index inclusion, Flutter could accrue other perks by making the NYSE its primary listing venue.

Those include boosting the stock’s profile, enhancing liquidity, and broadening its audience of potential investors —  professional and retail.

As the FanDuel parent noted, listing in the U.S. also eases its access to “deeper capital markets,” indicating it could more efficiently raise cash, if needed, than if it didn’t trade on a traditional U.S. bourse.