TLDR
- Flutter Entertainment will stop trading on the London Stock Exchange on August 3, ending a listing that began in 2000.
- The company will trade only in New York, where its primary listing has been since May 2024.
- Flutter shares have fallen nearly 50% this year and about 60% over the past 12 months.
- Analysts say the delisting is not the main cause of the stock drop; competition from prediction markets like Kalshi and Polymarket is a bigger factor.
- Legalization of sports betting in new US states has slowed, and some states have raised taxes instead.
Flutter Entertainment will stop trading on the London Stock Exchange at 8am on August 3.
The company’s shares have traded in London since December 2000, when Paddy Power first went public. That link ends this week.
From now on, Flutter will trade only in New York. Its primary listing moved there in May 2024.
The company says the change comes down to cost and low trading volume in London. Keeping two listings was expensive and no longer necessary.
The timing raises questions. Flutter shares are down nearly half this year and about 60% over the last year.
That has cut the company’s market value from over $50 billion last summer to around $19 billion.
Why the Listing Move Isn’t the Real Story
Analysts who spoke with iGB say the London exit is not what caused the stock drop.
One US-based analyst said the pool of investors is bigger in the US anyway. Moving away from London would not change much.
Other gambling companies have made similar moves. Light & Wonder left its dual listing for Australia’s stock exchange after its value fell too.
Ben Robinson of Corfai said the London exit was more symbolic than financial. He said Flutter likely will not need London again.
Chad Beynon of Macquarie agreed. He said the US market offers more investors and cheaper access to funding.
Prediction Markets Are Changing the Picture
The real challenge for Flutter is competition from prediction markets. Companies like Kalshi and Polymarket let people bet on outcomes without traditional sports betting licenses.
Robinson said Kalshi generated more than $30 billion in trading volume in June alone. That volume came from markets that regulated sportsbooks cannot fully reach yet.
This has reduced the value of future state licenses for companies like Flutter. Investors are now questioning whether the two-company market shared by DraftKings and FanDuel can keep growing the way it has.
Growth in states where betting is already legal has also slowed. Robinson called this a lasting shift rather than a short-term dip.
At the same time, legalization in new states has moved slower than expected. North Carolina raised its betting tax rate this year, and Ohio has introduced a bill that would end sports betting altogether.
Flutter still depends heavily on the US market, which makes up about 40% of its total revenue. That business grew only 6% during the first quarter of the year, while earnings from it fell 26%.
Growth abroad, mostly from brands in Italy and Brazil, grew faster during the same period. Company leaders are now leaning more on international markets to offset the slowdown at home.
In the UK, new tax rules that nearly doubled gambling duty in April are also cutting into profits. Flutter expects this to cost the company $320 million in earnings this year, rising to $540 million in 2027.
Legal questions around prediction markets remain unresolved. Courts have given mixed rulings in different states, and the issue may not reach the Supreme Court until 2027 or 2028.
Until then, analysts expect Flutter’s stock to trade without clear direction as investors wait for more certainty on both regulation and legal outcomes.
