The largest gaming firm in the world, Flutter Entertainment, recently acquired Snaitech from Playtech for $2.6 billion (€2.3 billion), a move that will allow it to capitalize on the Italian market. Besides solidifying its position as a worldwide leader in online betting, this move also enhances Flutter’s grip on Europe’s biggest gaming industry.
Flutter will combine Snaitech with its current powerhouse, Sisal, to increase its market dominance in Italy to almost 30% thanks to this acquisition. As it stands, Sisal is already one of the largest online gambling operators in the country having made €946.6 million in revenue last year, making it a very lucrative valuable addition.
The seller, Playtech, will return to its roots as a producer of business-to-business software, while Flutter expands its business-to-consumer presence. It remains in a strong position to maintain its growth as it already operates in 19 countries and specializes in software solutions for the gaming sector, as opposed to Snaitech’s consumer-facing strategy.
Italy and Beyond
The gambling scene in Italy continues to shift rapidly as more and more people are playing their favorite games on online platforms. This sector looks set for expansion as mobile devices are increasingly being used as the main betting channel and as regulations become more stable.
Flutter finds the Italian market appealing because of its advantageous market dynamics in addition to its existing development. Additionally, the country takes pride in its relatively stable gaming regulations and high gambling expenditure per adult relative to GDP. With that, Flutter is certain it can expand its business in Italy because of all these reasons.
“This transaction is compelling strategically and financially. It fits perfectly within our strategy for value-creating M&A and creates a significant opportunity to accelerate Snai’s growth by providing them with access to Flutter’s market-leading products and capabilities both in the US and globally. I look forward to welcoming the Snai team to the Flutter Group and working with them to maximize the growth opportunity for our combined businesses.”
Peter Jackson, Flutter CEO
True to the CEO’s words, Flutter’s acquisition of Snaitech is part of a broader global strategy to expand its presence in high-potential markets. The deal marks the second major deal for Flutter in just the past week. This past Friday, the business made public its plans to join the soon-to-be regulated Brazilian market by announcing its $350 million purchase of a 56% interest in Brazil’s NSX Group, owner of Betnacional.
