Flutter shareholders have voted overwhelmingly in favor of moving the company’s primary listing to the New York Stock Exchange (NYSE).
Some 98% of shareholders supported the relocation in a vote at the company’s AGM on May 1. The company says the move from London will be completed by the end of May and reflects “the company’s growth trajectory and changing dynamics of global markets.”
Flutter first began trading on the NYSE in January as a secondary listing. Around that time, it announced that it would put the issue of moving the primary listing to a vote. Now, Flutter will keep a secondary listing on the LSE but will be removed from London’s FTSE indices.
Flutter owns the likes of Betfair, Paddy Power and Tombola, in the UK. In North America, it is best renowned for its poker giant PokerStars and sports betting titan FanDuel.
Flutter has projected that it expects to generate almost 40% of its revenues from its U.S. operations this year. That would make America its largest market by revenue despite only seven states having regulated legal sports betting.
“We believe a U.S. primary listing is the natural home for Flutter, given FanDuel’s No. 1 position in the U.S., a market which we expect to contribute the largest proportion of profits in the near future,” said CEO Peter Jackson at the time of the January NYSE listing.
Flutter looks to capitalize on FanDuel name
Much of that growth has come from FanDuel’s large and expanding footprint in the U.S., where the brand’s name now carries hefty weight and makes up one of the biggest two sportsbooks in the market alongside DraftKings.
FanDuel captured more than 3.7 million new online bettors and gamers in 2023, up 19% from the previous year.
Flutter said one of its primary goals for relocating its listing is to consolidate that market leadership by building its U.S. iGaming profile in the wake of its sports betting success.
Another motivation is attracting investment. Investment experts agree that the NYSE tends to offer a broader range of capital, investors and liquidity than London. This can lead to more opportunities, such as the potential of tapping into new markets.
Flutter reported last week that overall group revenue rose 24.7% to $11.79 billion in 2023, with the U.S. operations a significant driver. America led all regions with $4.48 billion in revenue for Flutter, a 40.6% jump on last year. Its U.S. activity also resulted in positive annual adjusted EBITDA in 2023 for the first time, Jackson told investors in March.
The first 11 weeks of 2024 saw continued growth in revenue driven by a 55.6% rise in U.S. takings. The company forecasts sizeable growth in group revenue (projected at 17.5%) and adjusted EBITDA (30.2%) in 2024.
