Flutter Entertainment has actually sealed its EUR2.3 bn acquisition of Snaitech SPA, making its definitive play in its aspiration to control Italy's online and retail wagering sector.
The LSE/NYSE-listed gambling group launched its quote to acquire Snaitech from Playtech in September 2024, thereby protecting control of the SNAI brand-Playtech's primary B2C system.
The deal further reinforces Flutter's foothold in a reorganised Italian betting market, predicted to become Europe's biggest controlled betting market, with total gross gaming profits reaching EUR21bn in 2023, according to EGBA.eu.
SNAI signs up with Flutter's broadening local portfolio, which currently consists of SISAL, PokerStars, Betfair, and Tombola.it.
Leadership has its sights set on what it refers to as "considerable online growth capacity" in a market "where digital betting stays fairly underpenetrated." Italy's betting regulator ADM approximates the nation's 2025 gross gaming expenditure (GGE) at roughly EUR5bn.
Snaitech brings with it a substantial retail and digital operation: over 1,600 wagering stores, management of 60,000 New Slots and 10,000 Videolotteries, a suite of online gaming platforms, and ownership of 3 racetracks in Milan and Tuscany.
Flutter price quotes that the acquisition will increase its online market share in Italy to around 30%, with SNAI currently accounting for approximately 9%. In the retail betting sector, Snaitech held a 16% market share, while Flutter's existing operations represented 13%.
The bigger entity will command circa 29% of the retail market placing Flutter as the principal rival of Lottomatica, the market leader of Italian gaming retail area with a 42% share.
Peter Jackson, Flutter CEO
Group CEO, Peter Jackson, commented: "I am happy to welcome SNAI, one of Italy's leading video gaming brand names, to the Group. This acquisition aligns with our method of value-creating M&A and unlocks meaningful development potential by offering SNAI access to Flutter's market-leading products and capabilities."
In 2024, Snaitech generated EUR942m in profits for Playtech - majority of Playtech's overall profits for the year - highlighting the tactical worth of the property.
The acquisition supports Flutter's "local hero" method. With SNAI's strong brand recognition and loyal omnichannel customer base, the to expand its consumer acquisition channels.
Flutter forecasts EUR70m in operating expense synergies within three years, and EUR10m in capital investment cost savings, protected by leveraging the "Flutter Edge"- the exclusive technology for rates models, danger management, and in-house content.
To fund the acquisition, Flutter secured a EUR2.5 billion senior protected term loan from a consortium of banks. The facility matures in April 2026, with two optional six-month extensions, and bears interest at a rate of EURIBOR plus an initial margin of 1.25%.
