Flutter, the UK-based betting group that owns Paddy Power, is contemplating an additional US listing to capitalise on the growth opportunities in the American gambling market. As the Financial Times reports, the FTSE 100-listed company stated that it believes an additional US listing of Flutter’s ordinary shares would provide various long-term strategic and capital market benefits. Flutter plans to consult with shareholders on the matter immediately, and any agreement would take precedence over plans to list a stake of its American branch FanDuel.
A US listing would provide Flutter with various advantages, including access to US domestic investors and the ability to recruit American employees. It would also grant greater liquidity in its shares and give the company the option to pursue a primary US listing in the future. Last year, FanDuel, Flutter’s US sports betting and online casino business, turned a profit and became the company’s largest unit by revenue.
The UK gambling company’s revenue took a hit in the first half of last year after regulations tightened. Flutter’s UK businesses, which include online gambling company 888, were impacted. However, the additional US listing could offer the company a chance to expand into the lucrative American market and capitalise on the ongoing growth in sports betting and online gambling. Flutter’s move to consult with shareholders on the matter highlights its eagerness to take advantage of the US market’s potential.
