Flutter Entertainment to Leave London Stock Exchange and Pursue Listing in New York
In a significant development, Flutter Entertainment announced it will cease trading on the London Stock Exchange at 8am on August 3rd, shifting its trading exclusively to New York. This marks a major change for the company, which has been listed in London since Paddy Power’s float back in December 2000. Since May 2024, Flutter’s primary listing has been in New York, and now it’s formalizing that transition.
This decision comes amid a challenging period for Flutter, with its stock price experiencing a sharp decline down nearly 50% this year alone and around 60% over the past 12 months. Its market value has shrunk from over $50 billion last summer to roughly $19 billion today. While some analysts, as reported by iGB, suggest the London venue isn’t the core issue, they emphasize that changing expectations about the US market are a significant factor.
Flutter explained that low trading volumes in London, coupled with the costs and regulatory burdens of maintaining a dual listing, made the move necessary. Although the shares have been primarily traded in New York since May 2024, London has increasingly become a secondary venue with declining activity. Ben Robinson, a managing partner at Corfai, summarized the situation: “The practical case for leaving London was clear. Some UK funds limited to London-listed stocks may now have to sell, but the loss is mostly symbolic since Flutter had already shifted its market activity to the US.” Chad Beynon from Macquarie also supported the move, highlighting the strong presence of US institutional and retail investors, along with the lower cost of capital in America.
This shift raises questions about the future of Flutter’s US growth prospects. The original narrative was that sports betting would continue to expand as laws relaxed, with a stable duopoly led by FanDuel and DraftKings driving profitable growth. Robinson pointed out that prediction markets like Kalshi and Polymarket can reach customers in states like California, Texas, and Florida without waiting for traditional sports-betting licenses. For example, Kalshi alone generated over $30 billion in volume in June, suggesting that the value of future licenses could be diminishing. Beynon added that while prediction markets haven’t had a significant direct financial impact where betting is already legal, investors are now more cautious about future growth in the US. The primary concern remains whether FanDuel and DraftKings can maintain their dominance if new products gain access to key states.
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At the same time, the pace of legalisation has slowed. The earlier hope that states would prefer taxing licensed sportsbooks over federally regulated contracts has not materialized. Some states have even increased taxes, and Ohio has introduced a bill to end sports betting altogether. Prediction markets are now embroiled in legal disputes, with Nevada restricting Kalshi and a recent ruling by the Third Circuit court in favor of Kalshi against New Jersey. Robinson noted that the main focus remains on California, Texas, and Florida. One analyst predicts this legal issue could reach the Supreme Court, with a final decision unlikely before late 2027 or early 2028. Until then, gambling stocks impacted by this uncertainty are likely to stay relatively flat.
Flutter’s reliance on the US market remains substantial, accounting for roughly 40% of the group’s revenue, according to Robinson. In the first quarter, US operations grew by 6%, but the total amount wagered known as handle fell 9%, and US EBITDA (operating profit) declined 26%. Outside the US, international growth reached 27%, largely driven by acquisitions such as Snai and Betnacional. Robinson pointed out that this division, which had previously received less attention, is now carrying more of the company’s load.
Back home in the UK, increasing remote gaming taxes raised to 40% in April are also putting pressure on Flutter. The company estimates a pre-mitigation EBITDA hit of $320 million in 2026, rising to $540 million in 2027. The key question now is whether Flutter will focus on cutting costs or reducing marketing expenditure to protect profit margins. Flutter London Stock Exchange
