Flutter, the parent company of FanDuel, lists on the NYSE, positioning itself as a sports-betting pure play competitor to DraftKings.

• Flutter, the parent company of FanDuel, was listed on the New York Stock Exchange for the first time in the United States under the ticker symbol FLUT.
• Flutter expects to give DraftKings competition for earned media and investment capital.
• DraftKings' valuation could increase by 20% if Flutter were to acquire it, according to Jefferies analysts.

On Monday, Flutter, the parent company of FanDuel, was listed on the New York Stock Exchange, providing U.S. investors with an alternative to the largest pure-play sports betting company.

The international sportsbook will maintain its primary listing on the London Stock Exchange and remain part of the FTSE 100 index as a secondary listing.

FanDuel holds the market share leadership in the United States, where it generates the most revenue and growth for Flutter. In the fourth quarter, FanDuel had a 43% market share based on gross revenue and a 51% market share based on net revenue.

Despite outperforming its competitors, FanDuel remains overshadowed by its biggest rival, DraftKings, in earned media as the leading publicly traded pure play in sports betting. DraftKings' shares have surged over 150% in the past year and have increased by 9% year to date.

FanDuel is trading on the NYSE under the ticker symbol, and Flutter wants some of its success and capital.

Flutter CEO Peter Jackson stated on Jan. 18 that the additional listing would allow the company to access deeper capital markets and make Flutter more accessible to U.S. investors, marking a new chapter in the history of the Flutter Group.

Flutter could experience a short-term boost from its NYSE listing, according to Jefferies. In a note published Friday, analyst James Wheatcroft predicts a 20% premium to DraftKings’ valuation due to FanDuel’s “sustained market share outperformance.” Wheatcroft implies a price target of £210 for Flutter, which is currently trading at £163 per share in London.

Despite gaining traction after its SPAC listing in April 2020 and reaching an all-time intraday high of $74.38 on March 22, 2021, DraftKings has not surpassed FanDuel in terms of profitability.

Despite not gaining significant market share, other competitors have become profitable in certain quarters. Meanwhile, BetMGM, a joint venture between MGM Resorts International and Entain, has lost its market leader status in iGaming to DraftKings and FanDuel.

ESPN Bet, Michael Rubin's Fanatics Sportsbook, and Matt King-led Sportsbook are all aiming to capture market share from FanDuel and DraftKings.

The total addressable market for the sports betting industry in the United States is now estimated to be $37.5 billion by Jefferies.

In October at the Global Gaming Expo in Las Vegas, Amy Howe, CEO of FanDuel, stated that the company is prepared to compete with its well-funded rivals.

"The scale and uniqueness of the product will be crucial factors, as we are aware," she stated.

Flutter has decided to delist its shares from trading on the Euronext Dublin to simplify regulatory requirements, although it will remain incorporated in Ireland for tax purposes. As a result, Flutter will no longer be eligible for inclusion on the Euro Stoxx 50 index.