Flutter Entertainment‘s Italian leadership ambitions took a step further this week as the multinational gaming group secured regulatory approval for its takeover of Snaitech.
The Irish-founded, New York-listed company has cleared all antitrust, gaming and regulatory approvals to acquire Snaitech from a subsidiary of UK-based gaming firm Playech. The company first secured terms to acquire Snaitech in September last year for €2.3bn.
Snaitech is Italy’s third largest operator by market share and is one of the country’s biggest omni-channel operators, an important status to have in a market which continues to see retail activity play a leading role in betting.
Flutter has been chasing a podium spot in Italy for some time, part of its strategy of acquiring what it calls ‘gold medal’ brands in key markets in an Olympian metaphor. This is a long-running strategy which has seen other notable acquisitions, such as the takeover of Georgia’s Adjarabet in 2019 and a $350m investment in Brazil’s Betnacional last year.
“The acquisition of Snai fully aligns with Flutter’s strategy to invest in leadership positions in attractive international markets, creating value through providing access to Flutter’s market leading products and capabilities,” a Flutter statement read.
“Adding Snai to the Flutter portfolio will consolidate Flutter’s leadership position in Italy and create a position of increased scale to capitalize on the growth opportunity in Europe’s largest regulated market.”
Snaitech will sit alongside Flutter’s wider portfolio of leading brands, including the aforementioned Adjarabet in Georgia but also Paddy Power, Sky Bet and Betfair, leading firms in the likes of the UK and Ireland, while the latter also has a presence in Italy.
In recent years, Flutter’s biggest possession is its US facing brand FanDuel – a sportsbook with its origins in the pre-PASPA repeal era daily fantasy sports (DFS) scene.
As the market leading sportsbook in the US, FanDuel has proven the biggest growth driver for Flutter over successive quarters. This success contributed heavily to the firm’s decision to delist from the LSE and move to the NYSE.
Turning back to Italy, Snaitech is of course not the only element of the company’s leadership ambitions in the sector. The acquisition comes just a couple of years after it acquired market leader Sisal. The two brands combined afford a market share of around 30%.
Flutter has also hinted at bidding for the tender to Italy’s National Lottery, though this has sparked some concerns from gambling harm charities about cross-selling from the lottery to sports betting and/or online casino products.
Welcome to Gambling Consulting Authority (GCA) - Your Strategic Partner in Gambling Industry Advancement
