This week marked the end of an era for British betting firms, with Flutter Entertainment following through on its June pledge to delist from the London Stock Exchange.
Flutter could soon be joined by Evoke, formerly 888 Holdings, after the firm agreed to a takeover bid from the Greece-based gaming and lottery firm Bally’s Intralot.
More developments along these lines are in the pipeline, say the experts.
“This is not a gambling industry phenomenon,” Jacob Reynolds, the Asset Management Director at the UK-based wealth management firm Courtiers, told CasinoBeats. “The US market has been trading at a premium to the UK market for over a decade, but this has accelerated recently. The US has a bigger investment culture and greater retail investor participation in equity markets.”
US firms have embarked on an unprecedented buying spree of UK-listed companies in recent months. Overseas firms have sealed $142 billion worth of takeover deals in the UK over the past year, a 74% rise on 2024 figures.
And despite recent stock market buoyancy, the size of the London Stock Exchange continues to shrink, with listings tumbling by 35% in the past decade.
Gambling firms are eyeing an exit plan. And it involves the United States.
British Betting Firms May Follow in Flutter’s Footsteps
Flutter, which operates the FanDuel and Paddy Power brands, debuted on the London Stock Exchange in 2000. But it appears to have carefully planned its UK departure.
Two years ago, it delisted its primary Irish stock exchange listing in favor of a focus on the US.
“Flutter is hoping that, by becoming a pure US listing, it will trade at a US premium rather than at a UK discount,” said Reynolds.
The Paddy Power operator’s exit leaves just four firms in the British gaming and casino space.
If Evoke leaves, that number will shrink to three: the gambling software developer Playtech, the Grosvenor casinos operator Rank Group, and the Ladbrokes and Coral owner Entain.
All of these appear to view UK listings as a stigma, say the financial experts.
“I imagine all of these firms would like to increase their share prices by being viewed as US companies, but with a limited US footprint it will be difficult to justify,” said Reynolds. “Entain does have the BetMGM brand, but it is not as significant to Entain as FanDuel is to Flutter.”
And even BetMGM, Entain’s joint venture with MGM Resorts, has taken a battering of late. In its most recent quarterly report, it posted a 3% drop in active monthly users.
Last month, Entain laid off 500 staff members, claiming new tax hikes are taking a toll on its operations.
Middle East War Crushing Gambling Profits
The squeeze is not unique to the UK, however.
“Most casino operators are having a torrid time, with revenues flat and costs rising. It does not matter whether you are Rank Group in the UK or MGM Resorts in the US,” said Reynolds. “Hopes that lower interest rates would leave consumers with more money in their pockets were dented by the conflict in Iran.”
Geopolitical tensions have exacted a price on casino revenues elsewhere in the world, too.
The operator of Vietnam’s largest casino last month blamed the war in the Middle East for driving up fuel prices.
The conflict is driving up airfares and reducing international tourist arrivals, said the operator.
Casino chiefs in Russia have also blamed the US-Iran tensions for recent net profit drops of almost 5%.
For gambling operators who can do so, repositioning themselves as US firms at a time when the New York Stock Exchange is continuing to boom seems to make solid financial sense.
“The relaxation of US gambling regulations has largely reached a steady state, growth has slowed, and Flutter’s share price has halved,” said Reynolds. “Flutter is hoping that a sole US listing will help correct this.”
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