People walk past a banner outside the New York Stock Exchange for the initial public offering of Flutter Entertainment, the parent company of FanDuel, on January 29, 2024.
Spencer Platt | Getty Images
Father of FanDuel Flutter Entertainment will spend $2.6 billion, or €2.3 billion, to acquire Italian gambling company Snaitech Gaming Technologyjoining a series of agreements aimed at boosting international growth.
In an email to CNBC, a Flutter spokesperson said the company is “hugely excited” to add another leading brand to its portfolio “in what is the largest regulated market in Europe.”
The deal comes as Flutter looks to invest in major companies in regulated markets around the world. Last week, the company made a major move into Brazil (which will have regulated gambling starting in January) when it bought a majority stake in NSX Group.
Italy is a particularly attractive market for Flutter, as it had around €21 billion in gross gaming revenue in 2023, but only around 21% of that figure came from online gaming.
Snai operates approximately 1,600 gaming venues and a variety of online poker and casino games. Flutter has been increasing its presence in the country. acquired Italian lottery and gaming operator Sisal in 2022 and just reported record online market share in Italy in the second quarter.
Flutter said it expects the Snai acquisition to close in the second quarter of 2025 and that this will be immediately accretive to earnings per share. Flutter said Snai had nearly 10% of market share in Italy last year and nearly 300,000 monthly active users.
The company's strong brand awareness will likely be an advantage given Italy's tough restrictions on advertising and marketing.
The acquisition of the British gaming company is just the latest in a bid to expand its international presence. Last week, Flutter announced it will acquire a 56% stake in NSX Group for approximately $350 million and its existing Betfair Brazil business.
NSX operates Betnacional and other brands, and occupies the fourth position in the Brazilian market..
Flutter expects “an exciting runway for future growth” through the deal, CEO Peter Jackson said in a statement when it was announced.
The new business will be renamed Flutter Brazil and the deal is expected to close in the second quarter of 2025.
A “grey market” for gambling today This is the case in Brazil, where players have unrestricted access to online gambling platforms without formal regulation. That will change on January 1, when new regulations and licensed gambling come into effect.
Brazil had almost $3 billion in gross gaming revenue by 2023, and the market has grown by about 38% since 2018, according to Flutter.
Flutter will face a lot of competition in the market.
In Brazil, 113 companies applied for licenses during the preferential application window. MGM Resorts has filed an application in partnership with Latin America’s largest media group, Grupo Globo. Global gaming powerhouse Bet365 is already operating in Brazil and is expected to be a formidable competitor.
Based in Massachusetts DraftKingsFanDuel's main competitor in the US, remains focused on opportunities within its home market.
