Sky Bet owner confirms possible US stock market listing

Sky Betting & Gaming owner Flutter Entertainment has confirmed it is looking at a possible stock market listing for part of its US business.

Flutter said it is considering the listing of a “small shareholding” of FanDuel but said no decision has been made.

The company said: “Flutter regularly evaluates its organisational and capital structure to assess how best to position itself to deliver upon the Group’s strategy.

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“Options including the listing in the US of a small shareholding in FanDuel are being considered but no decision has been made at this time.

Sky Bet owner looks at possible US listing.

“Should a decision be made to proceed with a listing in due course, an announcement will be made as appropriate.”

The announcement comes after a report by CNBC suggesting investors in the UK-listed company are frustrated that shares are trading below those of rivals.

Flutter first invested in FanDuel, which started out as a fantasy sports website, in 2018 and spent 4.5 billion dollars (£3.2 billion) last December increasing its stake from 57.8% to 95%.

UK-based betting firms have played a significant role in growing the US gambling sector since liberalisation in the States at a federal level in 2018.

Flutter said it has a 40% share and 1.1 billion dollars (£790 million) in gross gambling revenue over the last year in the US.

FanDuel alone reported 967 million dollars (£694 million) in revenues in 2020.

Chief executive Peter Jackson said he expects the size of the US market to hit 20 billion dollars (£14.4 billion) by 2025 as each state looks to relaxing regulations.

Votes in 19 states are due this year on whether to legalise gambling.

In September, William Hill agreed a £2.9 billion takeover by casino giant Caesars, while Ladbrokes owner Entain rebuffed an approach from MGM earlier this year.