Flutter Reportedly Considers Italian Lottery License Bid

Flutter Entertainment is mulling purchasing Italy’s lottery operation license. The global gaming company, which owns FanDuel, Paddy Power, and Betfair, looks to partner with other operators to obtain the rights to run the lottery, according to an Irish Times report.

Flutter CEO Peter Jackson told the Irish Times in November his company would be interested in Italy’s oldest gaming license if it made economic sense. The deadline to place a bid is Mar. 17, and the report’s sources said the company has made no decision.

Strategic Fit for Flutter

Italy doesn’t allow online gaming ads, but customers can scan the back of their tickets. “The Italian lottery license would be a good strategic fit for Flutter’s portfolio given the cross-selling opportunities,” said John Blake, an analyst with Cantor Fitzgerald Ireland.

Status of Italy’s Lottery License

The Italian Agency for Customers and Monopolies granted International Game Technology (IGT) lottery operations for the last three decades. That deal ended in November, and Italy’s gaming regulator is taking bids at a €1 billion minimum to obtain nine-year rights to run the lottery. The contract is worth €4.3 billion, and IGT should be among the license’s bidders. The concessionaire’s commission is expected to rise from 6% to 9% with the new contract.

Flutter’s Italian Market Expansion

Obtaining the lottery license wouldn’t be Flutter’s first foray into Italy’s gaming market. Flutter acquired Italian gaming operator Snaitech from Playtech for $2.56 billion in September. The deal should close fully in this year’s second quarter, giving Flutter a 30% market share in Europe’s largest regulated country.

Global Growth Strategy

Flutter also entered the newly regulated Brazilian gaming market by purchasing Betnacional for $35 million last year, showing its desire to continue growing globally.

Read other Flutter Entertainment is mulling purchasing Italy’s lottery operation license. The global gaming company, which owns FanDuel, Paddy Power, and Betfair, looks to partner with other operators to obtain the rights to run the lottery, according to an Irish Times report.

Read other casino news