Feeling a bit lucky today? Flutter Entertainment (OTCMKTS:PDYPY) is bringing a little big of that betting magic to the stock market today, with over-the-counter shares up nearly 8%. As the gambling company ups its stake in a United States affiliate, what do you need to know about PDYPY stock?
Essentially, the big story today is that Flutter Entertainment raised its stake in FanDuel from approximately 58% to 95%. That massive jump gives it near total control of its U.S. affiliate, and it gives it way more exposure to the hot online gambling and sports betting markets.
With that narrative in mind, here are 12 things to know about the Flutter Entertainment news and PDYPY stock:
- Investors may be more familiar with the former name of Flutter Entertainment, Paddy Power.
- The company calls Dublin its home, and it is a bookmaking holdings company.
- Flutter Entertainment got its new identity thanks to the merger of Paddy Power and Betfair.
- It also more recently acquired The Stars Group.
- Although you can trade PDYPY stock over the counter, Flutter Entertainment primarily trades on the London Stock Exchange. Its symbol there is FLTR.
- While Betfair does have some online operations, a large part of the holdings company is its physical footprint of betting shops.
- One estimate suggests that Flutter Entertainment has more than 600 of these shops in the United Kingdom and Ireland.
- However, Flutter Entertainment is appealing to U.S. investors thanks to its stake in affiliate FanDuel.
- Importantly, Flutter Entertainment increased its stake to 95% today, buying out the stake held by Fastball.
- To do this, Flutter will pay Fastball approximately $2.1 billion and issue 11.7 million shares.
- PDYPY stock is up on the news, as is FLTR.
- FanDuel now has an estimated enterprise value of $11.2 billion.
Why the Flutter Entertainment News Matters
The big story here for investors is about the appeal of online gambling and sports betting. Through FanDuel, Flutter Entertainment can access sportsbook, daily fantasy sports, online casino games and online horse race betting products. As we saw earlier today with the excitement over Landcadia Holdings (NASDAQ:LCA) and its merger with Golden Nugget Online Gaming, investors want access to this world.
When it comes to Flutter Entertainment and PDYPY stock, the story is also one of impressive growth. As Bloomberg reported earlier today, recent moves such as the acquisition of The Stars Group has greatly helped. In other words, Flutter Entertainment has now got a real leg up on many of its rivals.
With attention squarely on online gambling in the United States, PDYPY stock looks intriguing Thursday. Keep this company and the broader narrative on your radar.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.