An investment fund is applying a spring clean to Flutter Entertainment shares…

Flutter Entertainment shareholder The Capital Group Inc has reduced its shareholding in the global gaming giant by five percentage points.

A Flutter stock update this morning showed that the Los Angeles-based PE fund had reduced its shareholding and voting rights from 14.9% to 9.9%. 

Capital Group has been a key stakeholder in Flutter for some time, having increased its investment in the company since 2024, lining up with the group listing on the New York Stock Exchange (NYSE) in January – a decision taken to enhance Flutter’s PLC status and capital for US investors. 

The investment management firm consists of several subsidiaries and divisions including American Funds, Capital Research and Management Company, Capital Bank and Trust Company, and Capital World Investors – the latter is the most involved with Flutter.

In September 2024, for example, the company purchased 269,325 Flutter shares to increase its total holdings in the firm to 13,865,128 at that time. This came at the crescendo of Flutter’s transformation from a Europe-focused business to a US-focused one.

The firm’s origins lie in Ireland and the UK with the merger between Paddy Power and Betfair. In 2018, while still known as Paddy Power Betfair, the firm bought FanDuel following the Supreme Court’s repeal of the PASPA federal legislation paving the way for the rollout of regulated sports betting state-by-state.

Since then, FanDuel has emerged as by far the firm’s biggest assets as one of the two biggest US sportsbooks alongside DraftKings. This and the subsequent NYSE listing in 2024 understandably caught a lot of US investor attention, including Capital Group.

Two years later, it is unclear exactly why Capital has opted to drop the number of Flutter shares it holds. Flutter’s latest financials may provide some answers, with the firm recording a hefty loss of $407m in 2025.

Uncertainty around the future of predictions markets in the US, whether these platforms could become serious challengers to traditional sportsbooks, and whether Flutter was too late in getting in on the craze with the launch of FanDuel Predicts in December 2025, could also be factors.

According to Flutter’s latest filing, Capital still holds 17,432,571 shares in the firm after a five percentage point reduction. Its divisions and subsidiaries are also key stakeholders in other major gambling firms like Las Vegas Sands, though it did reduce its shareholding in that company by 30% in Q3 2025.

February and March witnessed a shake-up in the investor make-up of the NYSE/LSE gambling group. Last week, London-based investment firm Parvus doubled its investment in Flutter to 10.7%. 

Further transactions saw Cayman Islands firm Candle Lake, the private fund of shipping container billionaire Kenneth Dart increase its shareholding to 18% , become the biggest shareholder in Flutter as of March 2026. 

Institutional investors now control 91% of Flutter’s share capital, with the remaining 9% held in public markets.

Over the past 12 months, Flutter’s share price has fallen by around 50%, as US investors reassess their exposure to gambling equities amid regulatory shifts favouring the rise of prediction-market operators such as Kalshi and Polymarket. 

This dynamic sees investment funds pick new studs in the market, shaking up the corporate valuations of all US gambling PLCs – a condition that will likely continue in 2026.