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March 4, 2024

Flutter Soars on First Day of NYSE Trading as FanDuel Cements Market Dominance

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Jan 29, 2024

Flutter Entertainment, the parent company of leading online sportsbook FanDuel, commenced trading on the New York Stock Exchange (NYSE) on Monday under the ticker symbol “FLTR.” The Ireland-based gambling giant is proposing to transition its primary listing from London to New York later this year as it aggressively expands its US operations.

Flutter Shares Surge Over 6% in NYSE Debut

Flutter shares jumped over 6% in early NYSE trading, valuing the company at nearly $27 billion. The successful debut comes after Flutter voluntarily delisted from Euronext Dublin last week to simplify its structure ahead of the New York listing.

The move reflects Flutter’s focus on the high-growth US market, where it owns FanDuel, America’s #1 sports betting brand. FanDuel is currently live in 15 states and controls over 40% market share in states like New Jersey, Pennsylvania, Michigan and Virginia.

Flutter CEO Peter Jackson commented: “Our listing on the NYSE represents a historic milestone for Flutter and serves as a catalyst for our ambitious US growth plans for FanDuel.”

FanDuel Strengthens New York Dominance Despite Competition

Flutter’s NYSE debut coincides with FanDuel further cementing its leadership in New York, one of the most lucrative sports betting markets in America. Despite facing stiff competition from rival DraftKings, FanDuel controlled 51% of the New York online sports betting handle in December.

NY Sports Betting Market Share – December 2023 Handle (%) Revenue (%)
FanDuel 51% 46%
DraftKings 29% 31%
Caesars 12% 14%
BetMGM 8% 9%

This table shows FanDuel’s dominance in the NY market.

The company has leveraged strategic media partnerships and an aggressive marketing campaign fronted by national TV personality Kay Adams. Last week, Adams hosted a special edition of her show “Up & Adams” live from the NYSE floor ahead of Flutter’s listing.

“New York is the crown jewel of sports betting markets,” said FanDuel CEO Amy Howe. “Despite intense competition, we’ve leveraged our first-mover advantage and unmatched brand awareness to build an extremely loyal customer base.”

Looking Ahead: Flutter Targets Leading US Sports Betting Position

With a market-leading position secured in states like New York, New Jersey and Pennsylvania, Flutter now has its sights set on becoming the #1 US sports betting operator.

FanDuel is live in just 15 states currently and sees a major growth opportunity as more states legalize online wagering. Over 30 states are expected to regulate sports betting by 2025.

Flutter has committed to investing $1.2 billion in its US division over the next five years. The company believes its portfolio of DraftKings, FanDuel, TVG and PokerStars gives it the strongest collection of betting brands in America.

Additional strategic priorities outlined during Flutter’s investor day presentation include:

  • Leveraging crossover between FanDuel’s sportsbook and TVG horse racing platform
  • Expanding FanDuel’s casino and iGaming product nationwide
  • Forming new media partnerships to amplify brand reach
  • Continuing state-level lobbying efforts for favorable legislation

FanDuel Stock: Analysts Overwhelmingly Bullish

With Flutter shares now trading on the NYSE, US investors have a pure-play opportunity to invest in FanDuel’s growth. Flutter provides far more transparency into FanDuel’s financials than competitors DraftKings and Caesars.

The market is overwhelmingly optimistic, with over 90% of analysts rating Flutter stock a buy. Morgan Stanley, Barclays and Deutsche Bank all upgraded Flutter to “overweight” leading up to the NYSE listing.

Flutter trades at a 2023 price-to-sales ratio of just over 3x, a significant discount to DraftKings’ 5x multiple. This suggests the market is undervaluing Flutter’s assets and upside potential.

If Flutter succeeds in capturing 25%+ US market share over the next decade, analysts consensus 12-month price target of $190 represents nearly 50% upside from current levels. This would give the company a market cap approaching $50 billion.

Final Thoughts

Flutter’s successful NYSE debut solidifies FanDuel’s position as a leading force in American sports betting. With tailwinds around US gambling legalization expected to persist, investors are taking notice.

FanDuel has proven it can translate its first-mover advantage into dominant market share even as competition intensifies. As more states regulate sports betting, the brand is positioned to profit both financially and in the public spotlight.

AiBot

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AiBot scans breaking news and distills multiple news articles into a concise, easy-to-understand summary which reads just like a news story, saving users time while keeping them well-informed.

To err is human, but AI does it too. Whilst factual data is used in the production of these articles, the content is written entirely by AI. Double check any facts you intend to rely on with another source.

By AiBot

AiBot scans breaking news and distills multiple news articles into a concise, easy-to-understand summary which reads just like a news story, saving users time while keeping them well-informed.

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