This past March, it looked like FanDuel was going to follow in DraftKings’ footsteps and seek a spot on a public stock market. Owned by Flutter Entertainment, which has its hands in sports gambling and iGaming operations around the globe, being traded publicly would certainly give FanDuel a lot of support for future growth. However, Flutter has to jump a few hurdles before a public launch can be made, and it now looks like it is going to take a moment to reconsider its options before taking the next step. A sour relationship between it and Fox Corp. could be a problem for Flutter.
Flutter to Delay FanDuel Public Launch
According to The Telegraph, citing information from unnamed sources, Flutter is going to hold off on splitting FanDuel away in order to seek a public launch. The company said four months ago that it wanted a spot for FanDuel on possibly the New York Stock Exchange or NASDAQ, a move that was certainly the reason Flutter took control of 95% of the company last December. Now, according to The Telegraph, “Insiders at Fox believe that with the legal row ongoing, Flutter will not be able to float FanDuel.” However, the media outlet adds that Flutter CEO Peter Jackson has denied the rumor.
Flutter spent $4.2 billion to buy its large majority of FanDuel at the end of last year. However, were it to go public, the operator is said to be worth as much as $18 billion to investors. That doesn’t mean Flutter would receive all of the benefit, as it has to settle its legal dispute with Fox. Fox helped Flutter cross the finish line with its FanDuel purchase in exchange for the rights to a cut of the business and is now accusing Flutter of a New York street hustle. If The Telegraph’s sources are correct, that legal dispute, which is currently part of New York’s Judicial Arbitration and Mediation Services department, could make an attempt at going public now very difficult.
FanDuel Sits on Top of the World
If the analysis is correct, Flutter can afford to wait a little longer before hitting a public exchange. Gambling Compliance head of content Daniel Stone took an in-depth look into the state of sports gambling across the US and found that FanDuel is in the lead. That much was already known; however, Stone indicates that the company may now have control of more than 50% of the market following a run on expansion initiatives.
Stone, who keeps track of the online sports gambling markets, asserted recently, We estimate that FanDuel’s national online market share soared to around 50 percent in May, vs 36 percent in Q1 and 39 percent in 2020.” However, the analysis doesn’t cover the entire picture. Stone reportedly reviewed Illinois, Indiana, Iowa, Michigan, New Hampshire, New Jersey, Pennsylvania, Tennessee and West Virginia and FanDuel is in all of those, except New Hampshire. However, it is also in Colorado and Virginia, which would indicate that, adding these two into the mix, the operator has an even larger share of the market.