Can Flutter Take Over As The Premier Online Gambling Company?

• Flutter is the parent company of FanDuel as well as other internet betting companies like Betfair, Paddypower, and the Stars Group.
• FOX has already invested in one of Flutter’s smaller companies before.
• This move will allow Fox to acquire up to 18.5% of stake in FanDuel.

NEW YORK — Flutter Entertainment recently announced that they’ll be selling $1 billion worth of equity in the company to help secure funds for future growth.

The gaming company has stated that it will be selling 8.05 million shares at a 5% discount from the companies closing price on May 28th.

Fox, one of the biggest media companies in the United States, has upped its stake in Flutter with the hopes of capitalizing on a rapidly growing US sports betting market.

This isn’t the first time Fox has made an investment in Flutter or one of its entities. In May 2019, Fox invested $236 million dollars in The Stars Group, which was bought out by Flutter in October 2019.

This, in turn, created the biggest online gaming company in the industry.

Although the financial numbers of the investment have not yet been revealed, Fox making this big of a leap into the legal gambling industry cannot be taken lightly.

Furthermore, Fox is trying to remain a factor in the betting industry since selling its shares in DraftKings to Disney in the 21st Century Fox acquisition.

“Fox is bullish about the opportunities in the digital sports wagering market,” said Lachlan Murdoch, Fox Corp CEO. “Fox Bet has shown strong growth since launching last fall, and we look forward to continuing that success with our partner, Flutter. Fox’s investment in Flutter underscores our confidence in Flutter’s business and its management’s ability to continue to drive leadership in the U.S. market.”

As more states began to allow sports betting the US, the market will continue to grow and should one day become the highest-grossing betting market in the world.

Fox making this investment shows that iGaming and online casinos can still generate revenue even in times like this where the Covid-19 pandemic has sent many bettors online.

Since Flutter is one of the biggest legal online gaming companies in the world this can be nothing but a bonus for all parties involved in this deal especially as online gaming continues to become more popular in the United States.

Lastly, this move allows Fox to invest even more money into FanDuel which is owned by Flutter. However, Fox will only have until 2021 to acquire a maximum of 18.5% of stake in FanDuel.