Paddy Power owner Flutter set to leave FTSE 100 amid New York move

Betting giant Flutter Entertainment might be set to leave the FTSE 100 after announcing plans to move its primary listing to New York.

Shares in the company behind Paddy Power and Betfair started trading in the US on Monday, but Flutter has kept its primary listing in London.

However, in a statement alongside the start of trading in New York, Flutter said it will ask shareholders to approve a move of the primary listing to the US.

It would still keep a secondary listing in London, meaning its shares could also be traded there.

The move would give the company a chance to be included in the big US indices, but would require it to be removed from London’s FTSE indices.

Flutter said it has spoken to US investors over the last year, and they support switching the company’s primary listing to the New York Stock Exchange (NYSE).

“As a result, the board believes that the NYSE is now the optimal location for Flutter’s primary listing of its shares, and that the transition should be made as soon as practicable,” the business said.

It will put the idea to shareholders at the company’s annual meeting on May 1, and if approved the change will happen around the middle of the financial year, Flutter said.

“With our NYSE listing effective today, this is a pivotal moment for the group as we make Flutter more accessible to US-based investors and gain access to deeper capital markets,” said chief executive Peter Jackson.

“We believe a US primary listing is the natural home for Flutter given Fanduel’s number one position in the US, a market which we expect to contribute the largest proportion of profits in the near future.”

Flutter’s shift in focus across the pond has been gaining pace for some time, and around 40% of its revenue now comes from the US.

In 2018 the company bought a controlling stake in American betting company FanDuel.

That was in itself a gamble, coming as it did before a ruling by the Supreme Court in Washington that opened up the previously restrictive US sports betting market, but it was one that paid off.

The company had initially paid 158 million US dollars (around £124 million) to buy 58% of FanDuel. Two years later, the cost of buying an additional 37% of the business had reached 4.2 billion dollars (£3.3 billion).

Being an early player in the US has allowed FanDuel to capture around 40% of the sports betting market in the country, making it the biggest player.