In a move set to shake up Italy’s gambling scene, Flutter, a gambling giant company, announced on Tuesday that it plans to acquire Italy’s Snaitech for a cool €2.3 billion ($2.6 billion), including debt. The deal, which will finalize by the second quarter of 2025, isn’t just a power move—it’s a fast track to bolstering Flutter’s dominance in Europe’s largest gambling market. The acquisition is poised to make an immediate splash on Flutter’s earnings per share, while Playtech, the seller, will shift its focus to its core business of providing software solutions.
Italy presents a juicy opportunity for Flutter. Right now, only 21% of gross gaming revenue in the country comes from online gambling, compared to over 60% in more mature markets like the UK and Australia. Research from Regulus Partners suggests that Italy’s digital betting market could grow by 10% annually over the next three years, driven by increased online adoption. Dan Taylor, Flutter’s head of international, pointed out that the shift could happen even faster, referencing the rapid growth seen during the pandemic. This deal follows hot on the heels of Flutter’s purchase of a majority stake in Brazil’s NSX Group, adding another brick to its global expansion.
With the Snaitech acquisition, Flutter’s clout in Italy will skyrocket. When combined with Sisal, the online market leader it snapped up in 2022, Flutter will control around 30% of Italy’s online gambling market. The company plans to keep both brands running, similar to its approach in the UK, where it operates Paddy Power, Betfair, and Sky Bet. Italy’s growing embrace of mobile betting, along with its stable regulations and strong gambling spend per adult, adds further fuel to Flutter’s ambitions. While Playtech’s shares dipped following the announcement, Flutter’s stock surged to its highest level since March, signaling investor confidence in its global strategy.
(Source: MarketWatch | Finance Feeds | CNBC)
