Flutter May Follow Through With FanDuel IPO This Time Around

Flutter Entertainment, the parent company of FanDuel Sportsbook, announced it plans to consult with shareholders about a potential US stock listing. In a statement, the company highlighted its increasing US sports betting business and the benefits of listing in the US. 

“This trend is expected to continue, with FanDuel becoming the Group’s largest business by revenue and an ever-greater proportion of its overall value. In this context, the Board has reached a preliminary view that an additional US listing of Flutter’s ordinary shares will yield a number of long-term strategic and capital market benefits.” 

Flutter said it would begin consulting shareholders immediately. The company plans to release preliminary 2022 results on Mar. 2. 

Not the first time Flutter has considered an IPO

This isn’t the first time Flutter has spoken about an initial public offering (IPO). In March 2021, the company first floated the idea of a US listing after buying 37% of FanDuel for $4.2 billion. The transaction gave Flutter 95% ownership of FanDuel.  

The remaining 5% of the US sports betting company belongs to Boyd Gaming. 

However, after the March purchase, things got a little murky. In April 2021, the company said it would not include its Fox Bet brand in any IPO leading to a lengthy arbitration process with Fox Corp.

Capital Markets Day

Flutter recently brought its FanDuel IPO idea to Capital Markets Day in New York. In November, the company mentioned five benefits Flutter would see from listing its stock in the US. 

1. Enhancing the company’s profile in the US
2. Enabling better recruitment and retention of US talent
3. Giving Flutter access to “much deeper capital markets” as well as new US domestic investors
4. Opening the possibility for a primary US listing, which would allow Flutter to be listed on prominent US indices
5. Providing greater overall liquidity in Flutter shares

Flutter currently trades on the London stock exchange. It is also a member of the FTSE 100 index, the most widely observed gauge of UK stocks. The company statement concluded by saying:

“In the event that there is broad shareholder for an additional US listing, this would take precedence over any plans to list a small shareholding in FanDuel.”