Flutter Entertainment, one of the world’s most reliable online betting companies, has some important news!
The company announced it is expanding its listing to the US, so it will start consulting the shareholders interested in joining the company’s listing. So far, the company’s shares have been traded in London and Dublin.
The US revenue:
Flutter decided to proceed with the US market because the revenue from its US FanDuel business has achieved the most profit of all the company’s businesses.
The company made a statement, saying: “The board has reached a preliminary view that an additional US listing of Flutter’s ordinary shares will yield a number of long-term strategic and capital market benefits.”
The company also commented on the benefits it will get with expanding its listings: this strategic move will enable Flutter to gain access to the capital markets on an entirely different level, as well as access to some of the critical US indices. In the future, the primary listing may be moved to the US at some point, which will result in significant profits for the company.
The official voting regarding the matter will be held in April at the company’s annual meeting. For the final decision to be made, 75% of board members will have to approve the expansion.
Everyone has high hopes when it comes to this expansion. The company claimed that the company would start shareholder consultation as soon as possible. The support the company got from its shareholders is huge, and the numbers are there to prove it – the company’s shares rose 4% since the plans were announced.
Flutter is, among other businesses, the owner of Paddy Power and FanDuel. There were some thoughts of forming a different listing of FanDuel, but the company gave up on this proposal. The reasons lie in the fact that Fox has a possibility to acquire up to 20% of the company, and that can block forming a listing. However, the company denied that Fox could stop any of its actions.
The possible locations of the listing are NYSE and Nasdaq. However, the final decision will be made after the meeting with shareholders.
The smart move:
This decision isn’t a surprise since two main Flutter jurisdictions have been hit with the new gambling regulation in the UK and Ireland.
However, the US revenue made the company get 11% growth in revenue despite all the obstacles. In 2018, the US Supreme Court abandoned the law that forbids sports betting, and that enabled the fast expansion of many companies.
In the same year, Flutter acquired a famous FanDuel, paying $158 million, and in November this year, the company was priced at $22 billion. It is estimated that the profit will grow in 2023. After the Super Bowl, the company went above and beyond by releasing a $7 million commercial. Also, it offered free bets worth $10 million for qualifying customers.
Amy Howe, the Chief Executive, said the company hoped this would bring about $17 million in bets.