Flutter expands Italian presence with €2.3 billion acquisition of Snaitech from Playtech

Flutter Entertainment, the world’s largest gambling company, has announced its latest major move by agreeing to acquire Snaitech, one of Italy’s largest gambling operators, from Playtech in a deal valued at €2.3 billion, including debt. This acquisition cements Flutter’s dominant position in the Italian gambling market and adds significant weight to its aggressive international growth strategy.

The deal, set to be finalised by the second quarter of 2025, is expected to immediately boost Flutter’s earnings per share, marking yet another successful acquisition for the company, which has been rapidly expanding across global markets.

Strategic focus on Italy

Italy, one of Europe’s most significant gambling markets, will see the transfer of Snaitech from Playtech to Flutter. This acquisition is a strategic shift for Playtech, allowing the technology provider to sharpen its focus on its business-to-business (B2B) software solutions, while Flutter strengthens its hold on the Italian gambling market. With Snaitech in its portfolio, Flutter’s share of the online gambling market in Italy will rise to an impressive 30 per cent, consolidating its leadership in the country.

Flutter already owns Sisal, another major player in the Italian market, and the addition of Snaitech will further solidify its dominance. The acquisition highlights Flutter’s long-term commitment to expanding in key European markets, where Italy remains a priority due to its robust and growing online gambling sector.

Continued global expansion

This deal follows close on the heels of another acquisition by Flutter just last week, where the company announced it would buy a 56% stake in Brazil’s NSX Group, operator of Betnacional, for approximately $350 million. This move comes as Brazil prepares to regulate its gambling market, and Flutter aims to establish a foothold early on.

The company’s expansion beyond Europe, particularly into the lucrative U.S. market, has been a key driver of its growth in recent years. Its U.S. operations, primarily through the FanDuel brand, have seen a surge in new customers and revenue, contributing significantly to Flutter’s global success. The recent shift of its primary listing from London to New York underscores its growing focus on the North American market.

Playtech to focus on B2B operations

For Playtech, the sale of Snaitech signals a strategic shift as it concentrates on its B2B operations, supplying gambling software to other businesses. The company, which operates in 19 countries, generated €946.6 million in revenue through Snaitech last year, making it a significant part of its portfolio. However, by divesting from its consumer-facing operations, Playtech aims to streamline its business and concentrate on its core offerings in software development.

A strong market reaction

Investors have reacted positively to the news, with shares in Flutter rising 0.8 per cent, hitting their highest level since March 2024. Playtech’s shares also saw a two per cent jump, reaching their highest point since November 2021. The discussions between Flutter and Playtech regarding the acquisition of Snaitech have been ongoing since August, and the announcement has bolstered market confidence in both companies.

With this acquisition, Flutter continues to demonstrate its strategic vision of growing its international footprint and bolstering its presence in key markets, such as Italy and Brazil. As the gambling industry becomes increasingly competitive, Flutter’s bold moves position it for further growth and expansion on a global scale.

The acquisition of Snaitech and the recent investment in Brazil are clear indicators of Flutter’s ambition to dominate not only in Europe and North America but also in emerging markets where regulation and growth potential align with its long-term business goals.