Yesterday, Paddy Power Betfair finalised its rebranding and started trading under its new name – Flutter Entertainment. The gambling operator’s move received approval from the parent company’s shareholders at its annual meeting which took place on May 15th.
The new name of the operator goes back to the time when exchange betting was something new and a merger was carried out between Betfair and its market competitor Flutter. The parent company’s name change, however, would not affect the group’s brands, including Australia-based Sportsbet and FanDuel in the US, and will continue operation as they are.
From today we're trading as Flutter Entertainment plc on @LSEplc & @euronext_ie (ticker: FLTR). Flutter is the new name for Paddy Power Betfair and incorporates six of the world's leading sports betting & gaming brands. Corporate website now available on https://t.co/SL0rKDV6UA pic.twitter.com/o4dTj49TOP
— Flutter Entertainment plc (@FlutterPLC) May 28, 2019
The proposal of the gambling giant to rename the operator to Flutter Entertainment came at the beginning of March. At the time, the company explained that the new name would better reflect its brands and operations diversity.
1/2: Our CFO Jonathan Hill spoke about the #Flutter Group yesterday at the @LSEplc market opening; here discussing the rationale for the name change, the heritage of the Flutter brand and the Group's current international profile: pic.twitter.com/DuXbmaKLFc
— Flutter Entertainment plc (@FlutterPLC) May 29, 2019
At the time when the name change proposal was made, the Chief Executive Officer Peter Jackson explained that the proposal came at a time when the global gambling operator enhances its brand portfolio (currently including six consumer-facing brands – Paddy Power, Betfair, FanDuel, Sportsbet, Adjarabet and TVG) and that the new name would also support the group’s future growth strategy. Mr Jackson further noted that the company remains as a key participant in the international gambling and sports betting market, offering a strong brand and product portfolio and having more than six million customers on a global scale.
2/2: Jonathan also spoke about the #Flutter Group's current strategy, focusing hard on core markets, international growth for Betfair, achieving podium positions in additional regulated markets, and capitalising on the current opportunity in the nascent US market: pic.twitter.com/5PrtTJynit
— Flutter Entertainment plc (@FlutterPLC) May 29, 2019
From May 28th, the company will trade its shares as Flutter Entertainment plc and its ticker symbol have been changed to FLTR on both the London Stock Exchange and Euronext Dublin.
Rebranding Comes at Time of Strong Competition and Challenging Market Conditions
The rebranding of Paddy Power Betfair to Flutter Entertainment comes at a time when the company is looking forward to strengthening its positions at the conditions of fierce competition and stricter regulatory rules. Flutter Entertainment’s shareholders believe that the new name would better reflect the gambling giant’s brand diversity so that the company remains profitable in all markets where it currently offers its services.
At the same time, its competitors are also seeking greater market expansion. The parent company of British bookmaker Ladbrokes Coral, GVC Holdings, revealed that the Nevada Gaming Commission had provided it with the required regulatory approval to offer its products and services in the state for an initial two-year period. The approval clears the way for the British gambling operator’s joint venture with local casino giant MGM Resorts, Roar Digital, to offer Nevada residents online gambling and sports betting options.
Furthermore, the New Jersey Division of Gaming Enforcement has given the nod to Roar Digital, allowing it to operate in that state.
Today @LSEplc welcomed @FlutterPLC, the new name for Paddy Power Betfair, for its first day of trading under its new name. Listed on the main market, Flutter Entertainment plc reflects the group’s diversity of brands, geographies and operations https://t.co/nvhSkeYFND pic.twitter.com/2EncylKRpv
— London Stock Exchange (@LSEplc) May 28, 2019
The last few years have seen many British and Irish gambling operators turn their eyes to global market expansion, especially to the US. After the US Supreme Court has lifted the federal ban imposed on sports betting by the Professional and Amateur Sports Protection Act of 1992 (PASPA), the new form of gambling available in the US has attracted an increasing number of global gambling brands which are willing to take advantage of the new opportunities there.
- Author
Olivia Cole
