Dublin-based Flutter Entertainment, FanDuel’s parent company, is set to move its primary listing to the New York Stock Exchange (NYSE) after a majority of the company shareholders backed the proposal during the Annual General Meeting that took place on May 1st.
A total of 98% of investors voted in favor of Flutter, formerly known as Paddy Power Betfair, switching to NY from the London Stock Exchange. The move is expected to become effective by the end of May. Earlier in January, Flutter announced that it would let shareholders vote on making New York its primary listing.
Flutter, which is the world’s largest online gambling group by market cap, acquired US betting brand FanDuel in 2018. It already has a secondary listing on the NYSE, where ordinary shares were listed in January. At the time, the company called the NYSE its “natural home.”
According to The Guardian, Flutter is projected to generate almost 40% of its revenues from the US market this year, becoming the largest market by revenue for the company.
FanDuel, the leading online sports betting brand in the US, is part of a portfolio that also includes Paddy Power, PokerStars, Sky Betting and Gaming, Sportsbet, and Betfair.
Flutter’s growth has been strengthened by the rapid growth in popularity of FanDuel, after the relaxation of online betting restrictions in the US in recent years. Sales in the country have risen from 10% of revenues five years ago, to 40% last year.
Last month, Flutter chairman John Bryant in a letter to shareholders explained why New York is the “optimal location” for Flutter’s primary listing. He said the board believed the transfer would “further unlock long-term strategic and capital market benefits” that were already being realized by the US listing.
These include enhancing Flutter’s profile in the US, greater access to deeper capital markets and US domestic investors including through eligibility for listing on US indices, and greater liquidity for Flutter shares.
Flutter has already voluntarily adopted several US reporting requirements to attract investment from domestic US funds and compete with US peers. Flutter’s move to the US was first discussed in February 2023, when it consulted shareholders about plans to obtain a secondary listing in New York as part of its overall expansion plans in the country.
The move also underlines the trend of several companies from the LSE opting to switch to the NYSE, where valuations and executive pay are reported to be higher. These companies include the likes of drug company Indivior which earlier this week announced that it was getting shareholders to vote on a plan to move its primary listing to New York.
Last month, Wael Sawan, the Chief Executive of Shell, stated that the oil company was undervalued compared to the competition in the US, adding that it was looking at all options if the valuation gap did not close, including a switch to New York.