FanDuel-Parent Flutter Lists on NYSE, Offering U.S. Investors an Alternative to DraftKings
Introduction
Flutter, the parent company of FanDuel, has listed on the New York Stock Exchange (NYSE), providing U.S. investors with an alternative to DraftKings, the largest pure play in the sports betting market.
Secondary Listing for Flutter
Flutter’s listing on the NYSE is a secondary listing for the international sportsbook. The company will retain its primary listing on the London Stock Exchange and remain included in the FTSE 100 index.
FanDuel’s Dominance in the U.S. Market
FanDuel, owned by Flutter, holds the largest market share in the United States. In the fourth quarter, FanDuel had a 43% market share based on gross revenue and 51% based on net revenue.
Flutter’s Bid for Recognition and Capital
Flutter aims to gain recognition and capital for FanDuel by listing on the NYSE. The company’s shares will trade under the ticker symbol FLUT.
Positive Outlook for Flutter
Analyst James Wheatcroft from Jefferies believes that Flutter’s NYSE listing could be a short-term catalyst for the company. He assumes a 20% premium to DraftKings’ valuation due to FanDuel’s sustained market share outperformance, implying a price target of £210.
DraftKings’ Performance and Competitors
While DraftKings has seen significant growth since its public listing, it has lagged behind FanDuel in terms of profitability. Other competitors, such as BetMGM, Caesars Sportsbook, Penn Entertainment’s ESPN Bet, and Fanatics Sportsbook, are also vying for market share in the sports betting industry.
Flutter’s Delisting from Euronext Dublin
Flutter will delist its shares from trading on the Euronext Dublin to simplify regulatory processes. However, the company will remain incorporated in Ireland for tax purposes.
