Flutter entertainment, one of the world leaders in the online sports betting and iGaming sector, has signed an agreement for theSnaitech acquisition from the British group Playtech, a leading operator in the omnichannel sector in Italy, for a value of 2,3 billion euros. This transaction confirms the Irish giant's intention to strengthen its presence in the Italian betting market, following the acquisition of Sisal in 2022. The transaction will be completed by the second quarter of 2025 and is expected to have an immediate positive impact on Flutter's earnings per share.
“I am pleased to announce the acquisition of Snai, one of the leading operators in Italy, which represents the largest regulated market in Europe – said Peter Jackson, CEO of Flutter; “This transaction is attractive from both a strategic and financial perspective. It fits perfectly into our strategy of value-added M&A transactions, and at the same time creates a significant opportunity to accelerate Snai’s growth, providing it with access to Flutter’s market-leading products and capabilities both in the United States and globally.”
Snaitech's role in the betting landscape
Snaitech (Snai) is the third online operator in Italy, with a 9,9% market share in 2023 and 291.000 active monthly players. The company's total revenues, net of gaming taxes, reached 947 million euros, with an adjusted EBITDA of 256 million euros, 50% of which was generated online. Thanks to a strong presence in the retail sector, with over 2.000 points of sale across the country, Snai is positioned as the second operator in the sports betting and gaming sectors, with a share of 19% and 14% respectively
Who is Flutter Entertainment?
Based in Dublin, Flutter is among the leading global operators in the sports betting industry.and iGaming. Listed on both the London and New York Stock Exchanges, the company has a strong presence in key markets such as the US, UK and Australia. Through international expansion and a strong focus on technological innovation, Flutter continues to arStrengthen your portfolio of operations and to push for greater digitalisation of the gaming sector.
Flutter Entertainment's Expansion
The acquisition of Snaitech aligns with Flutter's strategy of expand through M&A transactions in high-potential international markets. After the purchase of Sisal, this move will position Flutter as the leading online betting operator in Italy, with a 30% market share. The integration of Sisal has already brought positive results, with a constant growth in monthly players and revenues, increasing the online market share by 270 basis points.
The acquisition of Snaitech will allow Flutter to achieve significant operational and cost synergies, estimated at at least 70 million euros, thanks to theprocess optimization and reduction of administrative costs. Revenue synergies will provide further growth opportunities, thanks to the integration of Flutter's innovative products and the combination of the two groups' technological expertise. Flutter considers the operation advantageous, with a multiple equally attractive compared to the acquisition of Sisal.
Italian gaming market in great growth
Il Italian betting market, the largest in Europe with a Gross Gaming Revenue (GGR) of 21 billion euros in 2023, still has a low penetration of the online segment, accounting for 21% of GGR, compared to over 60% in markets such as the UK and Australia. This provides Flutter with an opportunity to scale by taking advantage of increasing digitalisation, which is expected to grow by 10% annually over the next three years.
The acquisition of Snaitech will allow Flutter to consolidate their position of leaders in the Italian market, both in the physical and online channels. Flutter aims to accelerate Snai's growth thanks to its capabilities developed globally, strengthening the group's competitiveness in a regulated and evolving context.
The Italian gaming market, driven by digital transition and favorable regulations, offers Flutter a strategic opportunity. The company expects that the growth of the online segment will accelerate in the coming years thanks to the increasingly widespread adoption of digital technologies and online gaming channels.
