Flutter secures shareholder approval for US listing

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Flutter Entertainment, the Irish gambling group and the parent company of FanDuel, has secured shareholder approval for a public listing in the US. 

At the company’s AGM this morning, the group put the question of a US listing, which would be secondary to its Irish incorporation and LSE listing, to its shareholders and required 75% or more approval to take place. 

It has since been confirmed that the approval has been granted by shareholders with 99.9% of votes in favor of the changes, marking a monumental moment in the history of the group, which has experienced huge success on this side of the pond since acquiring FanDuel. 

What will change after the US listing? 

Flutter, addressing investors’ queries ahead of the vote, noted that much of the group’s circumstances will remain the same. It will remain headquartered in Dublin, whilst it will still be incorporated and domiciled in Ireland, and the group will also remain a constituent of the UK’s FTSE 100 Index unless plans change to make a primary US listing. 

Instead, Flutter will look to take the opportunities of the secondary US listing, which will include access to “much deeper” capital markets and to new US domestic investors; greater liquidity of shares; better chances to recruit and retain US talent; and provides the opportunity to make the primary US listing later down the line. 

Following approval, Flutter will now look to list on either the New York Stock Exchange or NASDAQ exchange. Flutter is aiming to complete its secondary listing in the US by mid-late Q4 of 2023. 

Flutter’s FanDuel success

Flutter, via FanDuel, is the undisputed market leader in the US sports betting industry, with over 51% market share during 2022. Moreover, it had over three million active monthly players during Q4 and is the market leader in 15 of 18 sports betting markets. 

FanDuel also has 21% of the online casino market share in the US as it continues to roll out FanDuel Casino. 

The operator’s financial figures in 2022 were healthy too, with revenues of $3.2bn in 2022, up 67% YoY, whilst its EBITDA loss narrowed by 6% to $313m. However, the firm claims it was EBITDA positive in Q2 and Q4, apart from investments made into the launches of both Maryland and Ohio

Flutter CEO Peter Jackson told investors earlier this year: “We have a clear strategy to improve our igaming performance and grow our podium position, through increasing our focus on casino direct igaming customers and improving our product range and player experience. Although it is early days, we are pleased by the progress to date. 

“Q4 customer player days were 1.5 times the comparable period last year benefitting from the introduction of our FanDuel casino daily reward machine in Q3. Flutter exited the year with 63% growth in Q4 igaming AMPs and a 21% share of the Q4 igaming market, with FanDuel Casino sharing three percentage points higher than in Q4 2021.”

John Bryant joins Flutter board

In a big day for the group, Flutter has appointed John Bryant to its board as a Non-Executive Director and Chair Designate, replacing the outgoing Gary McCann later this year. 

Joining on September 1, Bryant is currently a NED of Ball Corporation, Compass Group, and Coca-Cola European Partners plc. Previously, he was CEO, CFO, and COO of cereal giant Kellogg Company.

Commenting on his new role, Bryant said: “I am very excited to succeed Gary as Chair of Flutter. I look forward to working with Peter and the management team to grow the business and to take advantage of the many exciting opportunities that lie ahead.”

Jackson added: “I would like to thank Gary for the contribution he has made to Flutter over his nine years as Non-Executive Director, eight of which were as Chair. He has helped steer the business through an exceptional period of growth. 

“I am very much looking forward to working with John. His experience will be invaluable as Flutter continues to execute its growth strategy.”