The Capital Group is trimming its stake in Flutter Entertainment…
The Capital Group Inc, a shareholder in Flutter Entertainment, has lowered its equity interest in the international gaming operator by five percentage points.
A recent stock disclosure from Flutter indicates that the Los Angeles-based private equity firm has decreased its voting rights and shareholding from 14.9% to 9.9%.
Capital Group has maintained a significant position in Flutter for some time, having ramped up its investment since 2024 to coincide with the company’s January listing on the New York Stock Exchange (NYSE)—a move designed to bolster Flutter’s corporate profile and attract US capital.
The investment management organization comprises several divisions and subsidiaries, such as Capital Bank and Trust Company, American Funds, Capital Research and Management Company, and Capital World Investors, with the latter being the primary entity engaged with Flutter.
For instance, in September 2024, the firm acquired 269,325 Flutter shares, bringing its total stake to 13,865,128. This occurred as Flutter reached the peak of its transition from a European-centric operation to one focused on the US market.
The company traces its roots to the UK and Ireland through the merger of Betfair and Paddy Power. In 2018, while operating as Paddy Power Betfair, the business acquired FanDuel following the Supreme Court’s decision to overturn the PASPA federal law, which enabled the state-by-state expansion of legal sports betting.
Since then, FanDuel has become the firm’s most valuable asset, standing as one of the two leading US sportsbooks alongside DraftKings. This growth, combined with the 2024 NYSE listing, drew significant interest from US investors, including Capital Group.
Two years later, the specific reasons for Capital’s decision to reduce its Flutter holdings remain unclear. Flutter’s most recent financial results might offer some context, as the company reported a substantial $407m loss in 2025.
Additional factors could include uncertainty regarding the future of US prediction markets, questions over whether these platforms pose a genuine threat to traditional sportsbooks, and whether Flutter entered the space too late with the December 2025 launch of FanDuel Predicts.
According to the latest regulatory filing, Capital retains 17,432,571 shares in the company following the five-percentage-point reduction. Its subsidiaries also hold significant stakes in other major gambling entities, such as Las Vegas Sands, though it did cut its position in that firm by 30% during Q3 2025.
February and March saw a reshuffling of the investor base for the NYSE/LSE-listed gambling group. Last week, the London-based firm Parvus increased its Flutter stake to 10.7%.
In other transactions, Candle Lake—a Cayman Islands-based private fund belonging to shipping magnate Kenneth Dart—increased its stake to 18%, becoming Flutter’s largest shareholder as of March 2026.
Institutional investors now account for 91% of Flutter’s share capital, with the remaining 9% held in public markets.
Flutter’s share price has declined by approximately 50% over the last year as US investors re-evaluate their exposure to gambling stocks amid regulatory shifts that favor the emergence of prediction-market operators like Polymarket and Kalshi.
This environment is leading investment funds to select new market leaders, impacting the valuations of all US gambling PLCs—a trend expected to persist throughout 2026.
Update – Flutter has since announced the completion of a share buyback program, with plans to repurchase 250 million shares in the 10-week period following 12 March 2026.