Shareholders reject Flutter’s blank check shares proposal
The proposal was intended to give directors more control over the gambling giant.
US.- Flutter Entertainment’s attempt to introduce so‑called blank check preferred shares was blocked at its annual general meeting after failing to win the supermajority required. Resolution 3(c) sought to amend the Irish gambling operator’s Articles of Association to permit “the issuance of preferred shares with rights and preferences to be determined by the Board from time to time.”
The move would have allowed directors to set the terms of such shares independently, giving them greater control over capital raising or defensive measures against shareholder influence. As a special resolution, 3(c) needed 75 per cent approval but received only 53 per cent. Most other resolutions passed.
The owner of FanDuel, Paddy Power and PokerStars remains the world’s third‑largest gambling group by market value, but has seen a mixed start to 2026. First‑quarter revenue was up by 17 per cent year‑on‑year to $4.3bn (£3.5bn), but net income dropped 38 per cent to $209m, weighed down by higher operating costs. The company’s stocks, which now has its main listing in New York, have fallen by 55 per cent since the start of the year.
Tax hikes in the UK and Brazil have dented investor confidence. The uncertainty around prediction markets is another factor weighing on the company’s prospects. Flutter has entered the space with FanDuel Predicts, but competitors DraftKings and Fanatics launched similar platforms earlier.
Billionaire Kenneth Dart now controls 27 per cent of voting rights. His growing stake has prompted speculation about a possible takeover bid. The proposed blank check shares would have given Flutter’s board a defensive tool against such moves.
Other institutions have also increased holdings: Parvus Asset Management to 10 per cent, Canadian Imperial Bank of Commerce to 5.3 per cent, and BlackRock to above the 5 per cent reporting threshold. Conversely, Capital Group cut its stake from 14.9 per cent to 9.9 per cent, while the Financial Times reported that hedge funds had shorted Flutter stock on the London Stock Exchange.
