FanDuel Parent Flutter Lists On NYSE: How It Could Impact Sports Betting Rival DraftKings
Portfolio Pulse from Chris Katje
Flutter Entertainment plc (NYSE:FLUT), parent of FanDuel, has listed on the NYSE, transitioning from its OTC listing under PDYPY. This move could impact DraftKings Inc (NASDAQ:DKNG) as investors may rotate from DraftKings to Flutter due to its new accessibility and status as a pure-play sports betting and gaming company. Flutter's Q4 revenue was up 15% YoY, with FanDuel holding a 43% gross revenue market share in the U.S. sportsbook market. Flutter's NYSE listing is seen as a strategic move to access deeper capital markets and align with its significant U.S. presence. Flutter is also the largest holding in the Roundhill Sports Betting & iGaming ETF (NYSE:BETZ) at 11.0%. Flutter shares are up 0.88% to $206.80.
January 29, 2024 | 5:01 pm
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POSITIVE IMPACT
The NYSE listing of Flutter, which is the largest holding in the Roundhill Sports Betting & iGaming ETF, could increase interest in BETZ as investors seek exposure to the sports betting sector.
As Flutter Entertainment becomes more accessible to U.S. investors through its NYSE listing, the Roundhill Sports Betting & iGaming ETF, which includes Flutter as its largest holding, may also benefit from increased investor interest in the sector.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Flutter Entertainment's NYSE listing could attract more U.S.-based investors and provide access to deeper capital markets, potentially increasing its stock value in the short term.
The NYSE listing of Flutter Entertainment is a significant event that could lead to increased investor interest and capital inflow, given its leading position in the sports betting market and the strategic benefits outlined by the company's board.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
DraftKings may face investor rotation towards Flutter following its NYSE listing, potentially impacting DKNG's stock price negatively in the short term.
Analysts suggest that DraftKings, previously benefiting from scarcity value as the sole U.S. listed operator of scale, may now see a shift in investor interest towards Flutter, which could lead to a short-term dip in DKNG's stock price.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80