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.Sky Bet owner looks at possible US listing.
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%.

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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.

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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.

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