Ahead of its quarterly results next week, the Betfair and Paddy Power owner received almost 100% backing from shareholders for the Stateside listing at its annual general meeting today, and confirmed the appointment of a new chair designate, John Bryant.
A full move for the gambling company's main listing away from London was also mooted by analysts at Jefferies, due to the success of its US sportsbook arm, FanDuel.
Analysts at the investment bank believe the secondary listing will further increase its profile in the US, with the US division expected to transform from losses in 2022 to the group’s largest division by underlying earnings in 2026.
By 2030, the total addressable US gambling market is estimated to be worth US$35.1bln, with Flutter on track for around a 40% market share, which would result in an EBITDA of £2.2bln in 2030, according to the analysts.
The move will better enable the recruitment of US talent, providing access to deeper capital markets and new retail investors, could help improve the overall liquidity of Flutter’s shares, and potentially set it up for a primary US listing in the future.
Flutter's new chair, announced yesterday, brings executive experience in cornflakes and glass jars, having been boss of Kellogg Company and currently a director at cans and jars maker Ball Corporation (NYSE:BLL).
“The chair-designate's heavyweight US business credentials will add further credence to a primary listing,” added Jefferies.
Flutter’s shares dropped 1% on Friday after opening at 15,845p.
The group is due to release a first-quarter trading update next Wednesday, having guided to the US business being profitable this year, which would allow the company to de-lever the balance sheet whilst continuing to sustain the growth in the US.
"Whilst Flutter has a circa 60% share of online sports betting in the US, it only has a c.20% share of online gaming; we believe this could be the next focus of investment," said analysts at Peel Hunt.
"We believe the performance of the International business should be supported by the continuing bedding in of Sisal, whilst the UK & Ireland should be stable".
When rival William Hill owner 888 updated on its Q1 trading, it was in line with previous guidance, while Ladbrokes owner Entain reported a strong start, with net gaming revenue up 11% in constant currency.
"Both of these results suggest FY23 should have started strongly for Flutter," Peel Hunt said.