Flutter Aims to Move Primary Share Listing to NYSE Later This Year

Flutter plans to transfer its primary stock listing to the New York Stock Exchange later this year

FanDuel parent Flutter Entertainment (NYSE: FLUT ) plans to move its primary stock listing to the New York Stock Exchange (NYSE) by the end of 2024 in a bid to attract more retail investors.

The news comes just over two months after the Dublin-based gaming company debuted on the New York Stock Exchange, abandoning its Euronext listing in the process. Currently, Flutter is mainly listed on the London Stock Exchange (LSE), one of the largest stock exchanges in Europe. The bookmaker is also a member of the widely followed FTSE 100 index.

Flutter shares are up 11.8% year to date, but have fallen slightly since their debut on the New York Stock Exchange on January 29. The decline was attributed to the company's fourth-quarter earnings report, which reflected some Market weakness.

The gaming company plans to ask shareholders to approve the London Stock Exchange's initial listing on the New York Stock Exchange at its annual meeting in May. Flutter currently has a market cap of $34.49 billion, making it the second-largest gaming company in the U.S. behind Las Vegas Sands (NYSE: LVS ).

Why Flutter masterlists matter in New York

Flutter's pursuit of a New York debut is the latest blow to the London Stock Exchange. British semiconductor maker Arm Holdings made a similar decision last year. Brexit may be a reason for this trend.

Brexit also plays a role. Since Britain left the EU, European financial centers such as London, Amsterdam, Frankfurt and Paris are more likely to view each other as competitors. The United States often benefits when foreign exchanges compete with each other rather than cooperate,” noted Craig Clay, president of DFIN Solutions.

Another reason foreign companies like Flutter are seeking initial listings in the U.S. is that the moves open the door to possible inclusion in widely watched U.S. stock benchmark indexes such as the S&P 500. Based on market capitalization and profitability metrics, if Flutter moves its primary listing to New York, the company would be eligible for inclusion in some major domestic stock indexes.

That could be an incentive to abandon a London debut, as active and passive fund managers aligned with U.S. indexes that could include Flutter would be forced to buy the stock if it were included in those indexes.

Flutter’s influence continues to grow in the United States

While Flutter is an international company, FanDuel is often associated with the U.S. sports betting industry, which is growing faster than the rest of the world. In 2023, FanDuel's first full year of profitability, Flutter told investors that its U.S. operations could generate core profits of $635 million to $785 million that year, up from $167 million in 2023.

FanDuel is Flutter’s largest revenue brand and the largest online sports betting provider in the United States. It controls 43% of the market, while rival DraftKings (NASDAQ: DKNG ) controls 36%.

Another potential benefit of moving the initial listing to the United States is that Flutter may receive more attention from retail investors, a group of market participants who have embraced online gaming stocks.