Flutter, the gaming giant that owns FanDuel, has reached an agreement to buy Italian gaming operator Snai for cash considerations at a $2.56 billion (€2.3 billion) enterprise value.
Snaitech SpA is currently owned by a subsidiary of Playtech. Flutter said in a statement Tuesday morning that the acquisition, expected to close by Q2 of 2025, is part of its push to invest more heavily in international markets. It said that upon completion, combining Snai with its existing Italian business, it will be the country’s gaming leader, with about 30% of the online market.
Flutter’s stock (NYSE: FLUT) opened trading on Tuesday relatively flat. Playtech (LSE: PTEC) is down about 5% as of Tuesday afternoon in London.
Italy is the largest regulated gambling market in Europe, with significant room to grow. According to Flutter’s numbers, the country had estimated gross gaming revenue of about $23.2 billion (€21 billion) in 2023, but with low online penetration. About 21% of that total came via online channels, as compared to more than 60% of revenue in more mature markets like the U.K. and Australia.
“This transaction is compelling strategically and financially,” Flutter CEO Peter Jackson said in the statement. “It fits perfectly within our strategy for value creating M&A and creates a significant opportunity to accelerate Snai’s growth by providing them with access to Flutter’s market leading products and capabilities both in the U.S. and globally.”
Snai is the third-largest online operator in Italy, according to Flutter, with a roughly 10% market share and 291,000 average monthly users. It also has more than 2,000 retail shops. The group generated revenue of about $1 billion (€947 million) in 2023 after the deduction of gaming taxes. Flutter said the move should create about $77.9 million (€70 million) in operating cost synergies over the first three years due to integration of technology and content.
Flutter, whose brands include FanDuel, Betfair, PokerStars, Sky Betting & Gaming and Paddy Power, began listing on the New York Stock Exchange earlier this year.
