Flutter Entertainment, one of the largest gambling groups on a global scale, has rejected the possibility of a lucrative float of its US sports betting assets until 2022.
According to rumours, the executives behind the British gambling giant that also controls brands such as Paddy Power, Betfair and Sky Bet, are waiting until 2022 before making a final decision to list a minority stake in FanDuel.
Earlier in 2021, the London-listed bookmaker revealed that it was considering a public offering for the brand in the US. Lately, FanDuel has managed to make great progress, ahead of its competitors thanks to the fact that the UK Supreme Court annulled the decades-long ban on sports betting in the country. According to analysts’ projections, the float could value the FanDuel business of Flutter Entertainment to as much as £15 billion.
Still, the British gambling company’s boss Peter Jackson cancelled the listing of the US sportsbook assets after Matt King, the head of FanDuel, resigned in May. Industry sources familiar with the situation reported that now, Mr King is expected to officially leave the operator over the next few weeks and to be replaced by an interim who has already been selected. The former boss of FanDuel is understood to be moving to work with the owner of the Chicago Cubs baseball team, Tom Ricketts, and the founder of Ameritrade, Joseph Ricketts.
FanDuel Boosts Its US Sports Betting Market Share, Executive Says
Currently, Flutter Entertainment is trying to find a permanent replacement for Mr King at FanDuel, with a final decision on the matter expected to be provided in the autumn.
The US sports betting operator remains in strong disagreement with Fox Corporation of Rupert Murdoch regarding the price at which Fox is able to use its right to carry out a multibillion-dollar purchase of an 18.6% stake in FanDuel. Currently, a legal arbitration on the issue is being carried out in New York’s Judicial Arbitration and Mediation Services. The lawsuit is still pending in court.
As explained by some Fox Corporation insiders, with the legal action ongoing, the British gambling operator will not be able to float its FanDuel assets. This claim, however, has been rejected by Mr Peter Jackson.
Currently, FanDuel controls the biggest share of the US online sports betting sector, with recent data suggesting that the company’s share will grow even further. A recent report by the head of data content at Gambling Compliance, Daniel Stone, indicated that the US bookmaker is boosting its position as a sports betting market leader quite a bit. Mr Stone provided estimates that the online market share of FanDuel nationwide rose to around 50% in May 2021, in comparison to 36% in the first quarter of the year and 39% last year.
- Author
Olivia Cole
