Flutter says considering small listing for U.S. online betting site FanDuel (updated)
13/03/2021 16:07
(Adds details, background)
DUBLIN, March 13 (Reuters) - Betting group Flutter
Entertainment FLTRE.I , the owner of Paddy Power, Betfair and
PokerStars, said on Saturday it is considering listing a small
shareholding of its U.S. FanDuel business.
Flutter, the world's largest online betting group, has
identified the United States as its next big growth market after
a ban on sports betting was lifted in 2018. In December it
increased its stake in FanDuel to 95% in a $4.2 billion deal
The Irish company said it was making the disclosure in
response to media speculation about a possible FanDuel initial
public offering. CNBC reported on Friday that Flutter was
considering spinning out the business. urn:newsml:reuters.com:*:nFWN2LA11V
"Options including the listing in the U.S. of a small
shareholding in FanDuel are being considered but no decision has
been made at this time," Flutter said in a statement.
Flutter, which merged its U.S. business with FanDuel in
2018, bought a 37.2% stake from Fastball in the December
deal. urn:newsml:reuters.com:*:nL4N2IJ2YI
That left the door open to further involvement by U.S.-based
FOX Sports, owned by Fox Corporation FOXA.O , giving it the
option in July to buy 18.5% of FanDuel in addition to its
current 2.5% stake.
Flutter, which maintains a 40% share of the market in the
U.S., earlier this month said it expects more than 14 billion
pounds ($19.49 billion) worth of business to be up for grabs by
2025 as more states than previously anticipated open up.
In February it said revenue in the U.S. exceeded that of
its two nearest competitors combined, including biggest rival
DraftKings Inc DKNG.O .
($1 = 0.7183 pounds)
(Reporting by Conor Humphries; Editing by Angus MacSwan and
Mike Harrison)
((conor.humphries@thomsonreuters.com; +35315001518; Reuters
Messaging: conor.humphries.thomsonreuters.com@reuters.net))