Flutter Finalizes €2.3bn Snaitech Deal

Flutter Entertainment has officially closed its €2.3 billion acquisition of Snaitech, positioning itself as the undisputed leader in Italy’s gambling market and reinforcing its dominance across both online and retail sectors.

With this deal, Flutter now commands an estimated 30% of the Italian gambling market—surpassing its competitors and creating a formidable portfolio that spans retail betting, online gaming, lotteries, and racetrack operations. Italy, projected to soon become Europe’s largest regulated gambling market, offers enormous growth potential.

Flutter already held a robust Italian footprint through its ownership of Sisal, PokerStars, Betfair, and Tombola.it. Now, with the addition of Snaitech’s 1,600 betting shops, 60,000 slot machines, 10,000 videolotteries, and three racetracks in Milan and Tuscany, Flutter extends its reach into nearly every corner of the Italian gambling ecosystem.

Peter Jackson, Flutter’s Group CEO, stated:

“I am delighted to welcome SNAI, one of Italy’s leading gaming brands, to the Group. This acquisition aligns with our strategy of value-creating M&A and unlocks meaningful growth potential by giving SNAI access to Flutter’s market-leading products and capabilities.”

Flutter estimates that Snaitech alone holds a 9% share of Italy’s total gambling market and a 16% share of the retail segment. Combined with Sisal’s footprint, Flutter now commands approximately 29% of the Italian retail gambling market, second only to Lottomatica, which holds an estimated 42%.

The strategic benefits are clear: Flutter anticipates achieving €70 million in cost synergies within three years and saving an additional €10 million in capital costs by leveraging its proprietary Flutter Edge technology. Funded through a €2.5 billion senior secured term loan from a consortium of banks, this acquisition underscores Flutter’s aggressive, yet calculated, expansion strategy.

Meanwhile, Playtech—Snaitech’s former owner—completes its transition away from B2C operations, focusing squarely on its B2B technology business. Playtech’s 2024 results highlighted a 5% rise in annual revenue to €1.79 billion, with Snaitech contributing over half of that figure, underscoring the strategic importance of the sale.

Flutter’s competitors, regulators, and partners must now recalibrate strategies in response to this market shift. Operators aiming to compete in Italy will need to sharpen their offerings, while investors should watch closely as Flutter leverages its new scale and tech advantages to unlock long-term value.

Flutter Completes €2.3bn Snaitech Acquisition, Cementing Its Leadership in Italian Gambling

Key Points

• Major Acquisition: Flutter acquires Snaitech for €2.3 billion, gaining 30% of Italy’s total gambling market.
• Retail Expansion: The deal boosts Flutter’s retail market share to 29%, rivaling Lottomatica’s 42%.
• Cost Efficiencies: Flutter expects €70 million in synergies and €10 million in capital savings using its own tech.

Why Flutter’s Snaitech Deal Reshapes Italy’s Gambling Industry

Flutter Entertainment’s latest acquisition cements its place as the leading force in Italy’s gambling sector, a market increasingly viewed as Europe’s crown jewel. With Italy’s regulated gambling landscape expanding rapidly, Flutter’s move allows it to consolidate market power across all verticals, from online betting and gaming to retail shops and racetrack operations.

Importantly, the deal gives Flutter access to Snaitech’s massive retail infrastructure, an area that complements Flutter’s strong digital presence through brands like Sisal, Betfair, and PokerStars. By integrating Snaitech’s physical network with its own cutting-edge technology, Flutter positions itself to deliver a seamless omnichannel experience, capturing consumer engagement both online and offline.

The financial logic behind the deal is compelling. Flutter not only widens its revenue base but also leverages economies of scale, improving margins through €70 million in projected synergies and €10 million in capital savings over three years. Furthermore, by tapping into the scale and insights of Flutter Edge technology, the company aims to modernize and optimize Snaitech’s operations for enhanced profitability.

For Playtech, this sale marks a strategic pivot toward focusing solely on B2B services. Despite Snaitech accounting for over half of its 2024 revenues (€942 million), Playtech’s leadership sees more future potential in providing technology and platforms to other gambling operators worldwide.

Flutter Entertainment’s acquisition of Snaitech is a transformative move that redefines the Italian gambling market. With a commanding 30% market share and an expansive retail and online footprint, Flutter solidifies itself as Italy’s gambling powerhouse. Backed by cost efficiencies, advanced technology, and a clear growth vision, Flutter is well-positioned to shape the next chapter of Europe’s largest regulated gambling market. Competitors, investors, and partners alike should prepare for a new era of heightened competition and innovation.