Flutter Electing To Leave Out Fox Bet From Possible IPO

  • Gaming giant Flutter is looking to list FanDuel on the NYSE through an IPO, but is excluding the FoxBet brand from the potential listing.
  • Flutter is the primary owner of the FanDuel brand but is looking to separate the FoxBet skin due to poor performance.

NEW YORK – The world of sports gaming is backed on profit, and those at Flutter Entertainment are putting some major weight in their next moves.

Flutter Entertainment is looking to list FanDuel on the New York Stock Exchange via an IPO, but announced Thursday they would be leaving the FoxBet brand out of the listing.

Flutter is currently in major disagreement with Fox about a previously agreed upon option that would allow Fox to purchase a 18.6% stake in FanDuel.

FanDuel has seen tremendous success over the last five years as one of the biggest USA online gambling providers, while the still fresh FoxBet skin has seen minimal action since its launch.

Flutter currently owns 95% of FanDuel through a deal inked back in December of 2020.

Now, with the success of FanDuel, Fox is looking to cash in on their option at the original agreed upon price.

While Flutter is pushing back saying that Fox should pay Flutter “fair market value” for their stake in FanDuel due to the success of the brand. With FanDuel set to continue expansion into online sportsbooks and casinos, this is a cash cow that everyone wants to attach themselves to.

It is a classic business dispute that has now gone to official arbitration.

Fox has already threatened to remove FanDeul ads from its networks.

Fox is trying to push back on an issue that came to light through recent earnings reports.

Flutter published the money splits for FanDuel and FoxBet, with FanDuel accounting for 91% of US revenue while FoxBet only came in with 8.4%.

That kind of disparity does not leave one with much room to negotiate.

Naturally, Fox would love to get a piece of the FanDuel pie while FanDuel and Flutter say that FoxBet is really not a major issue for FanDuel or Flutter.

This had led to Flutter now excluding FoxBet and its owners out of potential IPO. The IPO, which has yet to confirmed, could do extremely well in the near future.

Major competitor DraftKings went live in July of 2019 on the stock market and has seen their share price rise from $9 to $57 where it currently sits for an over 400% increase.

Leave a Comment