29 January 2024 , 15:11
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Paddy Power owner, Flutter Entertainment, is on the brink of saying goodbye to the FTSE 100 as it gears up for a move to New York.
The betting giant started US trading a few days ago, but the main hub remains in London. However, they're now thinking of shifting their primary listing to the United States, while keeping a secondary listing open for trades in London.
This relocation would allow them entry into big US indices but necessitate their exit from London's FTSE platform. Flutter released a statement that shared feedback from American investors who are fully behind the company moving its primary listing to the New York Stock Exchange (NYSE).
A Flutter spokesperson said: "As a result, the board believes that the NYSE is now the optimal location for Flutter's primary listing of its shares, and that the transition should be made as soon as practicable." A final decision will be at the company's annual meeting on May 1.
If shareholders approve, the change could take place in the middle of the fiscal year. Chief Executive Peter Jackson, said: "With our NYSE listing effective today, this is a pivotal moment for the group as we make Flutter more accessible to US-based investors and gain access to deeper capital markets," says
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"We believe a US primary listing is the natural home for Flutter given Fanduel's number one position in the US, a market which we expect to contribute the largest proportion of profits in the near future." Flutter is really focusing on the US now, where it makes about 40% of its money. Back in 2018, they took a big chance and bought most of an American betting company called FanDuel.
This was before the US Supreme Court made it easier to bet on sports in America, but it turned out to be a smart move. They first paid $158 million (that's about £124 million) for 58% of FanDuel.
Just two years later, they had to pay a whopping $4.2 billion (£3.3 billion) to get another 37%. Thanks to being one of the first to jump into the US market, FanDuel now has about 40% of the sports betting business there, making it the top dog.
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