FanDuel-parent Flutter lists on the New York Stock Exchange Monday, providing U.S. traders an alternate to the greatest pure play in sports activities betting, DraftKings.
It’s a secondary itemizing for the worldwide sportsbook, which can retain its main itemizing on the London Stock Exchange and included in the FTSE 100 index.
But Flutter’s most vital marketplace for income and development is the United States, the place FanDuel is the market share chief. In the fourth quarter, FanDuel had 43% market share primarily based on gross income and 51% primarily based on web income.
But whereas FanDuel outperforms its rivals, its greatest rival DraftKings grabs the headlines and highlight in earned media as the greatest (some would possibly argue, the solely) publicly traded pure play in sports activities betting. Shares of DraftKings have soared greater than 150% over the final 12 months and are up 9% 12 months to date.
Flutter desires a few of the glory and a few of the capital for FanDuel. Its shares will commerce on the NYSE beneath the ticker image FLUT.
Flutter CEO Peter Jackson put it extra diplomatically on Jan. 18, saying, “The extra itemizing will allow us to entry deeper capital markets as nicely as making Flutter extra accessible to U.S. traders and marks a brand new chapter in the historical past of the Flutter Group.”
Jefferies believes the NYSE itemizing might be a short-term catalyst for Flutter. In a word revealed Friday, analyst James Wheatcroft assumes a 20% premium to DraftKings’ valuation, due to FanDuel’s “sustained market share outperformance” and implies a value goal of £210. Flutter is at present buying and selling at £163 per share in London.
While DraftKings has gathered momentum since its public itemizing by way of SPAC in April 2020, hitting an all-time intraday excessive of $74.38 on March 22, 2021, it has lagged FanDuel in posting earnings.
Other rivals have develop into worthwhile in sure quarters, although they’ve failed to acquire important market share. BetMGM, collectively owned by MGM Resorts International and Entain, has seen its market chief standing in iGaming (on-line on line casino video games) slip, as DraftKings and FanDuel have overtaken it.
Caesars Sportsbook, Penn Entertainment’s newly relauched ESPN Bet and Michael Rubin’s Fanatics Sportsbook, headed up by former FanDuel CEO Matt King, are additionally intent on taking share from FanDuel and Draftkings.
Jefferies now estimates the sports activities betting business at $37.5 billion complete addressable market in the United States.
FanDuel CEO Amy Howe advised CNBC in October at the Global Gaming Expo in Las Vegas that the firm is prepared to take on its well-capitalized competitors.
“We know the scale goes to matter. And we all know that having the most distinctive product goes to matter,” she stated.
Flutter will delist its shares from buying and selling on the Euronext Dublin to decrease regulatory complexity, although Flutter will stay incorporated in Ireland for tax functions, in accordance to the firm’s web site. The delisting makes it ineligible for inclusion on the Euro Stoxx 50 index.