Caesar's Shares Dropped from S&P 500, Approval granted to Robinhood for Inclusion
In the world of finance and gaming, attention has shifted towards Flutter Entertainment as the next potential addition to the S&P 500. This follows the announcement that Caesars Entertainment will be "demoted" to the S&P MidCap 400 Index on September 22, 2025.
Caesars Entertainment joined the S&P 500 in March 2021, but its shares declined in after-hours trading on September 5, 2025, marking a significant drop in its market value. As of the close of US markets on that day, Caesars Entertainment had a market value of $5.36 billion, falling short of the minimum market capitalization required for S&P 500 membership, which stands at $22 billion.
Flutter Entertainment, on the other hand, seems poised to meet this requirement, with a market capitalization of $51.38 billion. The company, which is close to or already meeting S&P's profitability, liquidity, and share-float criteria for inclusion in the S&P 500, is being considered as the next logical addition to the index from the gaming industry.
Robinhood Markets, another contender for the S&P 500, has partnerships with Kalshi for prediction markets and plans to offer yes/no event contracts on college football and the NFL this year. If Flutter Entertainment is not added, Robinhood Markets is next scheduled to join the S&P 500 index on September 22, 2025, along with AppLovin and Emcor as new stock market operators in the index.
The S&P 500 index provider does not always replace companies from a certain sector with newcomers from the same group when altering the index. This means that the addition of Flutter Entertainment or Robinhood Markets could diversify the S&P 500, bringing in a new sector to the index.
Notably, if Flutter Entertainment is added, it would be the only casino stock in the S&P 500, as the only casino stocks currently remaining in the index are Las Vegas Sands (NYSE: LVS), MGM Resorts International (NYSE: MGM), and Wynn Resorts (NASDAQ: WYNN).
CNBC's Jim Cramer commented that having Craig Billings on AppLovin's board makes him feel that AppLovin is a good addition to the S&P 500. AppLovin, which has a member of Caesars Entertainment's CEO, Craig Billings, on its board of directors, was also added to the S&P 500.
Penn Entertainment (NASDAQ: PENN) was previously in the S&P 500 but departed in September 2022. The addition of Robinhood Markets, Flutter Entertainment, and AppLovin to the S&P 500 would mark a significant shake-up in the index, bringing in new players and potentially new opportunities for investors.
While sports betting ventures form a significant portion of Robinhood's revenue, a substantial part is not derived from these ventures. This could be seen as a positive, as it indicates a diversified revenue stream for the company.
In conclusion, the potential addition of Flutter Entertainment to the S&P 500 is generating a lot of interest in the financial world. With its strong market capitalization and meeting the S&P's criteria, Flutter Entertainment appears to be a strong contender for the index. However, the final decision lies with the S&P 500 index provider.
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