Does Flutter’s move to the New York Stock Exchange mean a new avenue for the New York economy?
In May of this year, global iGaming giant Flutter shareholders overwhelmingly voted to relocate the company’s primary listing from its home in London to the shining lights of the New York Stock Exchange (NYSE). With 98% of shareholders voting in favor of the move, this has illuminated to many the ever-evolving dynamics of the iGaming industry, indicative of a more significant shift in global market movements. Let’s take a closer look at this intriguing relocation and establish the reasons behind it. What does this indicate for the future of iGaming, and how much does the New York economy stand to gain from this new addition?
Background on the Move
Born out of a merger between rival giants of the British gambling scene, Betfair and Paddy Power, back in 2016, Flutter has slowly but surely been establishing a global gambling empire over the past decade, making several key acquisitions that have seen it become an industry behemoth.
Most notably, the company have made inroads into the rapidly expanding North American market, acquiring leading sportsbook company FanDuel as well as iconic online poker platform PokerStars. While the company has made forays into other international markets such as India, Italy, and Georgia, it is apparent that the lucrative nature of the emerging stateside scene has become its focus. Flutter’s move to Wall St represents the next step of their transatlantic project.
The company has been trading on the NYSE since the beginning of 2024 as a secondary listing, highlighting its desire to move away from London. Following the recent shareholder vote, Flutter has been removed from the London FTSE indices, with the company moving its primary listing to New York. Commenting on the move, Flutter CEO Peter Jackson stated, “We believe a U.S. primary listing is the natural home for Flutter, given FanDuel’s No. 1 position in the U.S., a market which we expect to contribute the largest proportion of profits in the near future.”
With almost 40% of the company’s revenue being generated in the North American market this year, it is clear why they have made this move. Furthermore, these revenues have been generated in a country where only 30 out of 50 of the states have legalized online gambling. With this number seemingly increasing yearly, Flutter is making a calculated decision that revenues will continue to grow.
What does this mean for New York?
The New York iGaming sector has undergone profound changes in recent years, with gambling activities in the state being extremely limited as little as 11 years ago. The passing of the bill to legalize online sports betting in 2022 was a significant step in the modernization of gambling regulation in New York, with many viewing this as the first step in the gradual introduction of iGaming activities in the state.
Very quickly, New York has established the country’s largest sports betting industry, contributing around $2 billion in tax revenue in just over 2 years. Although a lot of Americans now have access to the top online ranked casinos in their country, they unfortunately still remain unavailable to play in New York. Those in charge cannot deny the financial benefits of introducing regulated iGaming markets. In fact, a move to legalize online casinos has been made, with a bill being introduced to this year’s legislative session.
Flutter’s move to the empire state could influence proceedings, with many suggesting that this is an indication of greater legislative changes. As one of the largest iGaming companies worldwide, Flutter’s presence on the NYSE has enhanced the visibility and legitimacy of iGaming in New York. Investors and other industry leaders will be witnessing this move as a vote of confidence in the New York market, with it likely that others will soon join Flutter on the NYSE.
As work is done to develop regulatory frameworks, we could see Flutter involved, helping to influence the regulatory environment. This could lead to the expansion of gambling laws to allow for broader iGaming activities.
Fintech has become a bit of a buzzword these days, with investing becoming an opportunity for everyone, and no longer just an avenue for the rich, and New York has helped to make this happen. As one of the fintech capitals of the world, home to over 1600 fintech organizations of which nearly $50 billion worth of investments have been made, the addition of an iGaming sector in New York appears to make perfect sense on paper. The two industries are closely linked with much of the developments being made in both being beneficial to the other.
Key challenges, such as developing efficient digital payment methods and improving online security through decentralized systems, will require cooperation between industry leaders. Flutter’s move to the NYSE could be the start of a burgeoning relationship between the industries, attracting investors and driving innovation.
It is becoming increasingly complex to deny the emergence of fully formed iGaming industries in the U.S. It is now a question of when, not if states update their gambling regulations. Flutter has identified this early, and by unanimously voting to jump across the pond, consumers, lawmakers, and industry rivals alike are seeing the future of American iGaming before them.
For New York, the success of legalized online sports betting has been undeniable and many in the state will be excited to see what’s next following Flutter’s relocation to the NYSE. Few other places in the world boast the financial infrastructure of New York. While dependent on the outcome of this year’s legislative session, a new lucrative avenue awaits.
