FanDuel CEO Matt King will step down in the near future, putting plans for a US public listing in question.
Flutter Entertainment, the parent company of FanDuel Sportsbook, announced King’s intent to depart the business in an email Tuesday evening. The announcement highlights King’s role in helping FanDuel navigate the post-PASPA landscape in the US;
During his 4 years as CEO, Matt has overseen the transformation of the business from online daily fantasy sports operator to the market leader in US online sports betting and gaming. Matt has agreed to remain with FanDuel while a search process is undertaken to appoint his successor.
Whither a US FanDuel stock listing?
Flutter acknowledged that King’s departure could complicate its interest in spinning off US assets for a public listing:
As previously announced, the Flutter Board has been assessing the potential merits of listing a small stake in FanDuel in the US. Whilst Matt’s departure will affect the timing of any potential US listing, the Board will continue to keep this option under review.
Flutter stock sank 3% in international markets on the news as of the time of writing Tuesday evening.
FanDuel CEO succession plan
King took over as CEO in November 2017 after serving as the company’s chief financial officer. He replaced company founder Nigel Eccles in the same year the federal government blocked a merger between FanDuel and DraftKings.
The former daily fantasy sports giants would pivot to become market leaders in legal US sports betting following the Supreme Court decision to end the federal ban on sports betting in May 2018. FanDuel owns the top position in US sports betting market share to date.
Before coming to FanDuel in 2014, King served as director at investment management firm KKR, a lead investors in the original company. He also was an equity partner at Cottingham & Butler.
King, Jackson comments on departure
King hinted at new ambitions in his statement on leaving as CEO:
“It has been a privilege to lead FanDuel over the last 4 years through what has been an incredibly exciting period for the company. With FanDuel well positioned for the next chapter of its growth and always an entrepreneur at heart, now is the time for me to take on new opportunities as the next step in my career.
“I want to thank Peter (Jackson) and the whole Flutter team for their unwavering support since acquiring FanDuel 3 years ago. I have no doubt that the business will continue to go from strength to strength and I wish all of my colleagues the very best for the future as they pursue the next stage of growth.”
What’s next for Flutter?
Flutter CEO Peter Jackson said the company will seek new leadership immediately:
“I would like to take this opportunity to thank Matt for his considerable contribution in helping to make FanDuel the US market leader it is today. FanDuel has achieved so much in the 3 years since PASPA was repealed and that is due in no small part to Matt’s leadership and the strong team built around him.
“While we will be sorry to see him leave, he leaves the business in great shape. We are starting the process of looking for a new CEO for FanDuel and we remain focused on maintaining our leadership position in the US market.”