As the U.S. prepares for Super Bowl 2024, Wall Street is cheering on the newest sports betting stock to hit the market. International gambling giant Flutter Entertainment (NYSE:FLUT) begins trading today on the New York Stock Exchange (NYSE). The company has several successful subsidiaries, but to most people in the U.S., the best known is likely FanDuel.
FanDuel is commonly considered to be the top rival of sector-leader DraftKings (NASDAQ:DKNG). Wall Street is highly bullish on DKNG stock, as analysts anticipate a new sports betting boom. But now, as FLUT stock begins trading, DraftKings has a new competitor with the type of reach that spans continents.
The newly minted FLUT stock has been volatile since trading began today. While it is currently in the green with gains of 1.5% at the time of writing, the stock hasn’t surged like many do on their first day trading on a major U.S. index.
What else do investors need to know about this new stock? Let’s take a look.
What to Know About FLUT Stock
- Flutter Entertainment is based in Dublin, Ireland. For decades, it went by the name Paddy Power Betfair, only adopting its current name in May 2019.
- Flutter’s primary stock listing is on the London Stock Exchange (LSE). However, the company is working to shift that to the NYSE. It hopes to see that change happen before the end of 2024.
- Shareholders will have the opportunity to vote on a resolution to change the primary listing to the U.S. on May 1.
- FanDuel may be the most popular with U.S. audiences, but Flutter owns many other brands. These include Paddy Power, a top brand with Irish and British audiences, and Sisal, described as “Italy’s leading gaming operator.”
- While FLUT stock is new to U.S. markets, its American depositary receipts (ADRs) previously traded on an over-the-counter (OTC) exchange under the symbol PDYPY. That name is in reference to the name Paddy Power Betfair.
- CEO Peter Jackson says that Flutter is “very excited” about its U.S. listing. “It will enable us to access deeper capital markets as well and make Flutter more accessible to U.S. investors, marking a new chapter in the history of the company,” he stated.
- Despite the threat of having a leading competitor trading in U.S. markets, multiple analysts have speculated that DraftKings shouldn’t be concerned about Flutter.
- The sports betting industry is expected to continue growing steadily. Data from Statista projects that it will expand at a compound annual growth rate (CAGR) of almost 8% within the next four years, reaching a valuation of $67.17 billion.
- If those forecasts are correct, it will mean the field will have reached 181.9 million users.
- The company celebrated its NYSE listing by having National Football League (NFL) sensation Rob Gronkowski spike a football outside the exchange’s Wall Street headquarters in front of a cheering crowd.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
