Paddy Power owner threatens to quit London Stock Exchange for good

The gambling giant behind Paddy Power and Betfair has threatened to ditch the London Stock Exchange in a fresh blow to the City.Dublin-headquartered Flutter on Thursday revealed it had launched a review of its listing on London’s main market which could see it leave the exchange for good.The gambling group said it expects to complete its review by the end of June and will make a final decision shortly after. It warned that this could result in it leaving the London Stock Exchange completely while keeping its main listing in New York.It comes two years after Flutter switched its primary listing from London to New York in a major blow to the UK’s troubled stock market, which has suffered a series of high-profile exits in recent years.If the delisting is confirmed, the move would echo a similar decision by building materials group CRH, which said in March that it would delist entirely after similarly switching its primary listing to New York.Fintech business Wise, construction equipment company Ashtead, investment firm Petershill Partners and drugmaker Indivior are among the companies that have either switched their primary listings or left the London market entirely.Tui delisted from the London Stock Exchange in 2024 and moved its main listing to Frankfurt, while Just Eat quit for Amsterdam just a few months later.Arm Holdings, the Cambridge-based chip giant, also opted to list in New York in 2023, despite extensive efforts to persuade it to float in London by Rishi Sunak’s government.The exodus has been driven by low valuations and a relative lack of activity on the London stock market compared to New York, which has prompted firms to abandon the UK for America.Flutter’s threat to leave London for good now poses a fresh setback for the troubled exchange, which is also struggling to attract new listings.The company’s move to New York in 2024 followed its rapid expansion in the US through the acquisition of sports betting company FanDuel as it sought to capitalise on a loosening of gambling laws in America.The review of Flutter’s London listing comes as Rachel Reeves seeks to boost Britain’s stock markets by cutting red tape in the City and encouraging savers to buy stocks and shares.The Chancellor’s push to strengthen the London market has also seen her cut the amount of cash that savers are allowed to hold in tax-free individual savings accounts and urge pension funds to invest more in UK stocks.Flutter reported revenues of $4.3bn (£3.2bn) in the first quarter, up 17pc on the previous year, thanks to growth in online gambling.However, bosses warned the company had suffered from unfavourable sports results, denting markets including the UK.