May 2, 2024 3 min read

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Flutter Shareholders Approve Shift to New York Stock Exchange

The overwhelming 98% vote supporting the relocation emphasizes Flutter's strategic shift toward the United States

In another setback for London’s financial market, Flutter Entertainment, the parent company of Paddy Power, has received overwhelming support from its shareholders to shift its primary stock exchange listing to New York. The decision, made at the company’s annual general meeting, reflects a significant move for the gambling giant, which expects the transition to be finalized by the end of May.

Flutter’s US Move Reflects Growing Trend Among Multinationals

The resounding 98% vote in favor of the relocation underscores Flutter’s strategic pivot towards its “natural home” in the United States, as stated by chief executive Peter Jackson. Jackson highlighted that over half of Flutter’s shareholders are already based in the US, making the move a logical step for the company.

Flutter’s move mirrors a growing trend among multinational corporations opting to trade on US exchanges, where valuations and liquidity often outstrip those in Europe. The allure of Wall Street‘s higher liquidity and trading volumes was a pivotal factor for Flutter, particularly as its US market, buoyed by the success of subsidiaries like FanDuel, becomes increasingly dominant.

The decision to abandon its primary listing in London is another blow to the city’s standing as an international financial hub. Earlier shifts by companies like Tui and CRH have already raised concerns about London’s ability to retain major corporations amidst global economic shifts.

FanDuel’s Phenomenal Rise Drives Flutter’s Focus on US Market Growth

Flutter’s focus on the US market has been underscored by its rapid growth trajectory, notably through FanDuel’s expansion following the legalization of sports betting in 2018. With expectations of US revenues comprising nearly half of its total earnings this year, Flutter’s transition to New York reflects its commitment to consolidating its position in the world’s largest betting market.

FanDuel witnessed impressive growth during the fiscal year 2023. In the United States alone, FanDuel saw a remarkable 45.9% increase in sports betting revenue, solidifying its position as a leading brand in the country’s market. 

Despite facing stiff competition from rivals like DraftKings, FanDuel managed to attract 3.7 million new players, showcasing its strong brand recognition and successful market launches across the US. This stellar performance contributed significantly to Flutter’s overall revenue growth, underscoring FanDuel’s pivotal role in the company’s success amidst tough market conditions.

Jackson emphasized that while Flutter’s primary listing may move across the Atlantic, Ireland remains a vital part of the company’s identity, given its historical roots and founding. Despite this, Flutter’s departure from the FTSE 100 Index signals a significant shift in its corporate landscape.

Author

Silvia has dabbled in all sorts of writing – from content writing for social media to movie scripts. She has a Bachelor's in Screenwriting and experience in marketing and producing documentary films. With her background as a customer support agent within the gambling industry, she brings valuable insight to the Gambling News writers’ team.

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