Sept 17 (Askume) – Flutter Entertainment (FLTRF.L) said on Tuesday it would acquire Snetec for 2.3 billion euros ($2.6 billion), including the debt of gambling technology group Playtech (PTEC.L) , giving Italy a leading position in the United States as gambling companies move further afield.
The deal is scheduled to close in the second quarter of 2025 and will immediately accretive to the earnings per share of Flutter, the world’s largest gaming company.
Additionally, one of Italy’s largest gaming companies will see a change in ownership, with Playtech focusing on its operations as a business-to-business software provider.
Analysts say Italy’s gambling market is Europe’s largest, but online penetration lags behind countries such as the United Kingdom and Australia.
“Digitization is expected to drive online market growth over the next three years,” Davy Research analyst Paul Rudy said in a report, referring to the regulated Italian market.
This is Flutter’s second deal in a week. The company announced on Friday that it would acquire 56% of shares of Brazil’s NSX Group, a Betnacion operator, for about $350 million to move to Brazil’s CAN , which is about to be regulated.
The move comes as Flutter continues its aggressive international expansion, with the company gaining many new customers and revenues in the United States.
Earlier this year, the company, whose brands include Paddy Power and Poker StarsMoved its primary listing location from London to New York .
Flutter said the acquisition will strengthen Flutter’s position in Italy, and combined with its existing Italian business, it will gain around 30% of the online market share. Flutter already owns Sisal, one of Italy’s largest online gambling operators.
Market dynamics in Italy include a relatively high ratio of per capita spending to GDP and a growing share of online revenues from mobile devices, Berenberg wrote in August.
The brokerage also said that Italy’s recent regulatory reforms on online gambling will bring stability over the next nine years, especially on issues such as taxation.
Flutter operates in more than 20 countries around the world, including the fast-growing US market, where the company operates the FanDuel brand.
Playtech operates in 19 countries. Its business-to-consumer unit Snitek had revenue of 946.6 million euros last year.
Since August, both sidesNegotiations continue for Snetek .
Playtech shares were down 2.9% by 0916 GMT, while those of FanDuel and Paddy Power were up 0.7%, reaching their highest level since March 2024.
(1 USD = 0.8988 EUR)
