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
Parent FanDuel Flutter Entertainment will spend $2.6 billion, or €2.3 billion, to acquire Italian gaming company Snaitech from Playtechadding to a series of agreements aimed at boosting international growth.
In an email to CNBC, a Flutter spokesperson said the company is “very excited” to add another leading brand to its portfolio “in what is Europe’s largest regulated market.”
The deal comes as Flutter pushes to invest in leading companies in regulated markets around the world. Last week, the company made a major move in Brazil – which will have regulated gambling from January – when it bought a majority stake in NSX Group.
Italy is a particularly attractive market for Flutter, as it had an estimated €21 billion in gross gaming revenue in 2023. But only around 21% of that came through online gaming.
Snai has approximately 1,600 gaming outlets and a variety of online poker and casino games. Flutter is strengthening its presence in the country. Also acquired Italian lottery and gaming company Sisal in 2022 and just reported a record online market share in Italy in the second quarter.
Flutter said it expects the Snai acquisition to close by the second quarter of 2025 and be immediately accretive to earnings per share. Flutter said Snai had nearly 10% market share in Italy last year and nearly 300,000 monthly active users.
The company’s strong brand recognition will likely be an asset given Italy’s tight restriction on advertising and marketing.
The acquisition of the British gaming company is just the latest to expand its international presence. Flutter last week said it was taking a 56% stake in NSX Group for about $350 million and the existing Betfair Brazil business.
NSX manages Betnacional and other brands and holds the No. 4 position in the Brazilian market.
Flutter expects “an exciting future growth trajectory” 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 “gray market” of gaming right now exists in Brazil, where players have unlimited access to online betting platforms without official regulation. That will change on January 1 when new regulations and licensed gambling come into force.
Brazil had almost $3 billion in gross gaming revenue by 2023, and the market has grown roughly 38% since 2018, according to Flutter.
Flutter will face a lot of competition in the market.
In Brazil, 113 companies have applied for licenses in a preferred application window. MGM Resorts has applied in partnership with Latin America’s largest media group, Grupo Globo. Global gaming company Bet365 already operates in Brazil and is expected to be a formidable competitor.
based in Massachusetts DraftKingsFanDuel’s main competitor in the US, remains focused on opportunities in its home market.
