Paddy Power owner to ditch London listing for New York

THE owner of Paddy Power is poised to quit the FTSE 100 and shift its main listing to New York, delivering a fresh blow to London’s struggling stock market.

Flutter, which also owns Pokerstars and Betfair, said yesterday that it now sees the US as its “natural home” and will work towards shifting its primary listing to the New York Stock Exchange.

While it would retain a secondary share listing in London, the shift would probably make Flutter ineligible for inclusion on FTSE indexes.

Conversely, a primary listing on the NYSE would allow Flutter to pursue inclusion in US indices such as the S&P 500, which is thought to be a major draw for executives.

Flutter shares were down by as much as 0.6pc in London yesterday but rose by more than 1pc as they made their debut in New York. The company, which is worth £28.9bn, announced its plans last year and upgraded its US ambitions after discussions with shareholders.

It will now ask them to vote on the plan at its AGM in May, with the move taking effect over the summer if approved. Peter Jackson, Flutter’s chief executive, 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.”

Flutter’s shift in focus to the US is a further blow to the London Stock Exchange, which has seen a string of companies decamp and has struggled to attract high-profile new listings.

CRH last year shifted from London to New York and the British stock market missed out on the $54bn initial public offering of Cambridge-chipmaker Arm.

The number of requests to float on the London Stock Exchange’s main market has plunged to its lowest level in at least six years, according to Financial Conduct Authority data.

Gambling in the US has been spurred by a Supreme Court decision in 2018 that effectively ended a federal ban on sports betting in every state but Nevada. Gambling revenue hit $16.2bn (£12.8bn) in the third quarter of 2023, according to the American Gaming Association.

While it is best known in the UK for running the high street bookmaker Paddy Power, Flutter also owns a majority stake in Fanduel, one of the biggest sports betting firms in the US.