Flutter Entertainment, owner of the U.S. sportsbook FanDuel, is closer to wrapping up its $2.52 billion acquisition of Italian gaming operator Snaitech from Playtech. With all the remaining regulatory approvals now secured, the companies hope to close the deal at the end of this month, ahead of their original Q2 timeline.
Key Takeaways
- The acquisition first began in September 2024
- Flutter purchased Snaitech for $2.5 billion
- Prior to the acquisition, Flutter also purchased Italian online operator Sisal in 2022 for $2 billion
The acquisition, initially announced in September 2024, is a significant step in Flutter's further expansion into leading global markets. It has focused particularly on establishing its presence in Italy.
The deal was subject to rigorous regulatory review, including by competition and gaming regulators, but Flutter and Playtech said on April 9 that all the conditions were now satisfied. The deal will set the stage for a completion within the next few weeks, a major reshuffling of the European gaming sector.
For Flutter, the takeover is consistent with its efforts to add its stable portfolio of domestic brands in Italy. The group already controls some prominent brands, such as PokerStars, Betfair, and Tombola.
In addition to Snaitech, Flutter purchased Italian operator Sisal in 2022 for $2.12 billion. Now that Snaitech is also included in the lineup, Flutter looks to entrench itself as the dominant operator in Italy. It even considered applying for an Italian lottery license in January.
Flutter said the acquisition will allow it to expand its operations even more and achieve synergies in product offerings, customer engagement, and platform technology. The group will bring Snaitech's assets into its broader portfolio, allowing it to tap into its proprietary technologies and customer experience solutions.
Snaitech is the leader in Italy's gaming sector, offering both land and online gaming services. It operates in three verticals: sports betting, casinos, and gaming machines. The deal is expected to significantly enhance Flutter's Italian business, both in online gaming and omnichannel retail and gaming verticals.
Snaitech performance strong through transition
According to Playtech's full-year 2024 financial report, Snaitech's total revenue increased only 1% year-over-year. Online revenue increased by 3%, driven by casino performance, but sports betting suffered due to customer-friendly results for the year's initial months. Retail betting sales rose 6%, and gaming machine revenue dipped 2%.
Before the sell-off, Snaitech was already reflected as a discontinued operation in the company's financial statements for 2024. While Snaitech showed flat results, Playtech's continuing B2B delivered robust growth.
Revenue from core continuing operations stood at $943.7 million, a 10% increase from last year. Including Snaitech's contribution, the revenue was just under $2 billion, up 5% year-over-year.
Snaitech's sale will make Playtech an even more focused B2B technology company in the gaming industry. The company argued that the successful closing of the deal would facilitate its ability to intensify B2B activities and invest even more resources to build its technology portfolio for the growth markets.
The business will maintain a light footprint in business-to-consumer (B2C) operations post-sale. However, it now emphasizes that its focus is on providing technological infrastructure and services to other gaming operators. Playtech's B2B business made €829.3 million in revenue in 2024, up 10% per annum.
