- Legal States
Mike Johnson March 15, 2021 3 min read
Flutter Confirms It Considers Listing FanDuel on US Exchange
Flutter Entertainment has confirmed rumors that the company is planning to float FanDuel Sportsbook on a US exchange.
FanDuel May Become Standalone Company
British gaming group Flutter Entertainment has confirmed that it’s looking to list a small amount of its stake in the FanDuel Sportsbook business in the United States. The confirmation comes after CNBC published rumors that Flutter, which secured a 95% stake in the sportsbook for the sum total of $4.2 billion in December, is considering floating FanDuel as a separately-traded company a US exchange.
Originally, CNBC cited sources who explained that Flutter isn’t certain that this would happen or that a move was even imminent. Flutter, though, hurried to substantiate the rumors on Saturday, confirming that the CNBC report is accurate, but again didn’t provide any certainty.
“Options including the listing in the US of a small shareholding in FanDuel are being considered, but no decision has been made at this time,” the statement read. Flutter is quite optimistic about its presence in the United States, too, with an estimated 40% of the market share.
The company puts the 2025 outlook at $19.49 billion, and it has argued that it’s still outstripping its biggest two competitors in terms of revenue. Flutter said that its revenue exceeds that of its two biggest competitors combined.
Investors See Suggested Flotation as Undervalued
Not everyone is entirely happy with the deal, CNBC explained. Investors have argued that Flutter is trading at a discount compared to DraftKings, even though FanDuel already controls a sizable chunk of the market, as mentioned before.
With 40% of the sports betting market as per company’s reports, this puts FanDuel at the helm of sports betting. BetMGM, another market giant, is planning to be competing for the top spot before long, as per the words of its now-former CEO Shay Segev who left for a position at DAZN.
Flutter’s assets span multiple brands, including Paddy Power, Betfair, Fox Bet, and PokerStars, to name a few. FanDuel’s own footprint, though, is considerable, and compared to other brands, the sportsbook has a far more important reaching.
Spinning off the company may help Flutter boost its value and meet investor expectations of increasing the stock price. A standalone FanDuel will be unchained of Flutter and continue to gather momentum in a market that still has a long way to go in terms of legalizing its sports betting industry, giving FanDuel a lot of room to grow into.
Earlier in March, rumors begin to swirl that Fox Corporation boss Rupert Murdoch may be looking to increase his stake in FanDuel.
Mike made his mark on the industry at a young age as a consultant to companies that would grow to become regulators. Now he dedicates his weekdays to his new project a the lead editor of GamblingNews.com, aiming to educate the masses on the latest developments in the gambling circuit.