Flutter Entertainment (NYSE: FLUT), which operates FanDuel, has delisted from the London Stock Exchange, making it only available on the New York Stock Exchange. The move signals Flutter’s intention to prioritize the U.S. market amid rising operational costs in maintaining a listing on the London Stock Exchange. The move could result in enhanced features at FanDuel. It comes at a time when FanDuel faced public scrutiny related to its VIP offerings.
Flutter announced its intentions to delist from the London Stock Exchange back in June, but finalized the move on August 3rd. It is now only available for trade at the New York Stock Exchange. The move shows how the U.S. market is the priority for Flutter.
FanDuel remains one of the top sportsbooks in the country, consistently ranking alongside DraftKings throughout most states with legal sports betting. While Flutter will still operate in the U.K., most of its revenue comes from the U.S. Due to lower trading volume and increasing costs to maintain two listings, Flutter delisted from the London Stock Exchange.
What this means for the U.S. sports betting industry is that we could see more resources poured into FanDuel, since it’s the platform that generates the most revenue for them. That could mean more investment into the mobile platform, user features, or responsible gaming resources. On top of that, a single listing at the New York Stock Exchange can make it more accessible to American investors.
To that end, this move can be seen as a positive for the U.S. sports betting industry.
Recently, FanDuel faced public criticism after reportedly using a Bryce Harper Cameo video as a message to entice one of its VIP users to place more wagers. The optics on this move were bad, as it was an example of a U.S. sportsbook trying to influence a high-volume bettor to wager more through the use of a famous professional athlete, even though the user had allegedly already accrued significant losses.
With the move to delist from the London Stock Exchange and prioritize the U.S. market, perhaps Flutter will place more emphasis on responsible gaming.
VIP offerings can be problematic because the goal there is to entice users to bet more. But the only time they’re offered this is if they have significant losses. Those with significant winnings are often limited to low-stakes wagers, to the point where it effectively kicks them off the platform.
With that in mind, an increased focus on the U.S. market means ensuring moves in poor taste like the Bryce Harper video don’t happen again.
The good news is that we’ve already seen examples of FanDuel enhancing its responsible gaming offerings, including its “Play with a Plan” campaign, which was released earlier this year.
