FanDuel to list on NYSE amid US online betting boom

Gambling firm hails ‘pivotal moment’ with listing on New York stock exchange as US sports betting company jets.

Capitalizing on the US Online Sports Betting Boom:

Flutter Entertainment, the owner of FanDuel, is set to list on the New York Stock Exchange, marking a significant move to capitalize on the booming online sports betting industry in the United States.

Sales Surge in the US:

Flutter reported impressive sales of £3.6 billion ($4.59 billion) in the US last year, a substantial increase from £191 million ($243 million) in 2018. This surge follows the US Supreme Court’s decision in 2018 to overturn a long-standing law prohibiting sports betting in many parts of the country.

Competitive Landscape with Rivals:

FanDuel, along with competitors DraftKings and BetMGM, has been at the forefront of the competitive race to dominate the emerging US online gambling market.

Strategic Move to Boost Profile:

Flutter’s decision to join the New York Stock Exchange and drop a second listing in Dublin is seen as a strategic move to enhance its profile and gain access to more capital in the US market.

Concerns and Acknowledgment of Growth Potential:

In regulatory filings, Flutter acknowledged the potential for significant future growth in the industry but also recognized concerns around problem gambling. 

The company highlighted that such concerns could influence future regulations, prompt investigations, and discourage individuals from placing bets.

Transformative Impact and Market Expansion:

The liberalization of sports betting in the US has been transformative for Flutter, with CEO Peter Jackson considering making May 18, the day of the Supreme Court decision, a company holiday. 

The US market, responsible for almost 40% of sales last year, has become a crucial component of Flutter’s business.

Expectations for Future Growth:

While sports betting is now legal in 36 states and Washington DC, Flutter remains optimistic about further expansion, expressing confidence that major states like Texas will follow suit. 

The company is closely monitoring initiatives to change the stance on sports betting in California, with expectations that it will be back on the ballot in the near future.

Positive Outlook on Online Gambling Industry:

Wall Street analysts are bullish on the online gambling industry in the US, describing it as a “hyper growth industry.” Analysts particularly highlight FanDuel’s significant competitive advantage in this evolving market landscape.