- Legal States
Julie Moraine April 16, 2021 2 min read
Flutter Hires Moelis, Explores Sale of Oddschecker
Global gambling group Flutter Entertainment is actively looking to offload its Oddschecker business, a report in Sky News revealed today, noting a prominent investment bank was contacted to advise the sale.
According to the report, Flutter hired New York investment bank Moelis & Company as an advisor to the sale of the leading odds comparison and bettor referral platform which changed several owners since its inception in 1999.
Oddschecker was acquired by Flutter Entertainment in 2020 as part of the $11 billion merger deal with TheStars Group, but following the withdrawal from the platform of one of Flutter’s main domestic rivals, Entain, the FTSE100-listed gambling group is actively exploring sales opportunities for the asset which according to unnamed sources from the City could fetch up to £150 million.
The Oddschecker platform which allows sports bettors to compare odds across a number of sports betting operators was significantly impacted by the decision of Entain to withdraw its sports betting brands Ladbrokes, Coral and Betdaq from the service and, according to insiders at Flutter, was the main determinant for the executive decision made by the group’s CEO Peter Jackson to offload the business.
Focus on Core Businesses
Shifting the focus to growth for its core businesses, Flutter is considering a review of its entire business structure, including a separate listing for its US business, daily fantasy and sports betting brand FanDuel, to accelerate its domestic growth and offer optimal value for investors.
Last month, Flutter confirmed rumors related to the plans to float the FanDuel Sportsbook on a US exchange. In December last year, Flutter completed the acquisition of FastBall’s stake at the sports betting brand for $4.2 billion to put its holding at the business to 95% and raise FanDuel’s market valuation to $11.2 billion.
The global gaming group which now has a market valuation of nearly £27 billion noted that a small shareholding in FanDuel was under consideration to be listed in the US, but no firm decision had been made.
In its 2020 full year report, Flutter Entertainment posted 28% increase in total group revenue to £5.2 billion, mainly due to the integration of TheStars Group business. In the report, Flutter revealed its US business is holding 40% market share in online sports betting and 20% share in the iGaming vertical while revenue in the US jumped 81%.