FanDuel‘s parent company, Flutter Entertainment plc, is on track to commence with a U.S. listing by the end of 2023 after the company gained overwhelming from shareholders this week.
Flutter, one of the world’s largest gambling companies, received approval from approximately 99% of voting shareholders at Thursday’s annual general meeting. The U.K.-headquartered company needed to gain approval from at least 75% of votes cast in order to go public in the U.S.
Flutter announced in February that it would begin consulting with shareholders on a secondary listing in the U.S. At the time, Flutter noted that the listing would provide numerous long-term benefits in giving the company access to deeper capital markets abroad, as well as new U.S. domestic investors. In addition, the company believes the move will help enhance the recruitment and retention of workers in the U.S. and result in greater liquidity in Flutter shares. (Market liquidity typically refers to the ease at which a stock can be bought or sold.)
"About 99 per cent of Flutter shareholders backed the US listing at the Dublin-based group’s annual meeting after a two month-long consultation."
Paddy Power and FanDuel owner Flutter takes a step closer to primary listing in UShttps://t.co/bC3SODtAQh
— Alfonso Straffon 🇨🇷🇺🇸🇲🇽 (@astraffon) April 27, 2023
Flutter, which is based in Ireland, will maintain a primary listing in London.
FanDuel, the definitive leader of the U.S. sports betting market, announced in March that the company held a nationwide market share of approximately 50% in the fourth quarter of 2022. Flutter CEO Peter Jackson expressed confidence that FanDuel will deliver full-year profitability in 2023. The U.S. secondary listing will not affect Flutter’s tax structure overseas, Jackson added.
Other Flutter news 5f6r41
The company also appointed John Bryant as non-executive director and chair designate for Flutter Entertainment. Bryant, a former Kellogg’s executive, will replace Gary McGann effective Sept. 1. Bryant’s U.S. background is viewed as a positive for the company as it moves closer to the secondary listing in New York.
“We have hard work to do to actually get U.S.-style reporting, which takes a lot of effort in of current and previous years’ numbers,” McGann told RTÉ.ie, a media outlet in Ireland. “The probability is that it will take us close to the year end, at which point we should be in a position, having gone through the SEC process, to be listed on a U.S. stock exchange.”
The moves give Flutter the option of eventually pursuing a primary listing on a New York public exchange.
Flutter also comprehensive white paper by the U.K. Gambling Commission. The review of the 2005 U.K. Gambling Act marked the agency’s most thorough evaluation of sweeping technological changes in the industry in more than a decade.
The white paper has at least been released. It is however the start of the process, rather than the end. Important consultations ahead around affordability, statutory levy and stake limits. Our CEO, @Paul_Buck20, shares his reaction.https://t.co/PfjvrBjjY5
— EPIC Risk Management (@epigc) April 27, 2023
Ahead of the paper’s release, Flutter noted that it made preemptive changes to the company’s responsible gambling program that will have a negative impact of £150 million ($188.7 million) on its U.K. business.
“We welcome the publication of the white paper, which we see as a significant positive moment for the U.K. gambling sector, raising standards and bringing the regulatory framework into the digital age,” Jackson said in his March statement. “We believe proactive change will lead to a better future for our industry.”
Flutter closed Friday on the London Stock Exchange at £15,875 pence, up 0.6%. Flutter shares declined fractionally on the week.
