Flutter Entertainment’s decision to shift its primary listing location to New York will be seen as a ‘body blow’ to the UK capital.
The move looks to bolster the potential of the firm in the US, as it looks to tap into elevated opportunities when it comes to recruitment and access to capital markets in the region.
Nonetheless, the move has been cited as having a key impact on London, with the shift marks yet another company departing London for alternative avenues.
Neil Shah, Director of Research at Edison Group, told CasinoBeats: “Another day, another body blow to London with Flutter confirming that it will shift its primary listing location from London to New York.
“That Flutter has upgraded its love affair with the US markets to fully-fledged relationship is no surprise given that its US operations are a significant part of its business and the soon-to-be primary source of its profits.”
Shah emphasised that the intensifying regulatory framework in London may well continue to contribute to firms departing the region and placing an elevated focus in North America.
“Yet London’s role as jilted partner continues, with yet another company leaving its embrace on the promise of higher valuations and deeper pools of capital in the US,” continued Shah.
“Certainly, the easing of sports betting regulation in the US, coinciding with heavier regulation in the UK, is a major factor in the scramble for US market share.
“However, that a top 20 company has chosen to depart the City, with Flutter’s secondary listing status excluding it from FTSE 100 inclusion, follows a very worrying and very public trend of listed companies losing trust in the City, which must prompt the government to turbo-charge its listing reforms.”
