In this photo illustration the FanDuel logo of a sports betting company is seen on a smartphone.
FanDuel parent Flutter Entertainment said Tuesday it is considering listing on a U.S. stock exchange.
The company said its board is consulting with shareholders to gauge their interest.
The development comes two days after a record Super Bowl for betting. FanDuel said it accepted 50,000 bets per second at its peak, averaging 2 million active users on its platform during the game.
FanDuel is the nation’s sports betting market leader and is on track for full-year profitability in 2023, according to the company. Its $3 billion in annual revenue makes up the biggest segment of Flutter’s overall business. The company also owns Paddy Power and Betfair, well-known gambling platforms internationally.
Flutter is based in Ireland, and its stock is traded in Europe. A U.S. listing would also expose Flutter to new American investors. Jefferies analysts said it would command a premium, “as market leader in the larger global online gambling market.”
Flutter said an additional listing in the U.S. would elevate its brand and help the company attract and retain talent. Flutter said a listing would provide liquidity and access to deeper capital markets.
“When DraftKings was trading near its all-time highs, there was significant pressure from Flutter shareholders to spin off FanDuel in a U.S. IPO,” said Lloyd Danzig, managing partner of Sharp Alpha Advisors, “to take advantage of the premium multiple that it appeared the market was placing on a US-based digital gaming business.”
When valuations and multiples plummeted, the speculation over a FanDuel IPO cooled.
FanDuel parent Flutter considers U.S. stock listing
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