Flutter Entertainment, the parent company of FanDuel, has recently announced its purchase of Italian gaming company Snaitech S.p.A., which will make it a preeminent power in Italy’s mobile sports gaming market.
Flutter Bolsters International Presence
In another bold bid to increase its presence in the international gaming market, Flutter Entertainment has agreed to purchase Italy’s third-largest gaming operator, Snaitech S.p.A., for a reported $2.56 billion from its parent company Playtech. Snaitech S.p.A. currently enjoys approximately 9.9% of Italy’s gaming market.
“This transaction is compelling strategically and financially,” Flutter CEO Peter Jackson said. “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.”
Snaitech averages 291,000 monthly players, and its retail brand makes up 19% of Italy’s sports betting and 14% of its gaming market. It also owns racetracks and gaming machines. Italy’s gross gaming revenue reached $23.2 billion in 2023, and Snai will generate $77.9 million in operating cost synergies over the next three years.
“I look forward to welcoming the Snai team to the Flutter Group and working with them to maximize the growth opportunity for our combined businesses,” Jackson said.
Playtech CEO Mor Weizer released a statement that read in part,
“While Snaitech has been an important part of the Playtech Group’s growth in recent years, the Board agreed that this transaction represents a compelling opportunity to maximize value for our shareholders while also allowing them to share in further upside from continued ownership of a leading B2B business.
The combination of the Playtech Group’s leading technology with its exposure to attractive markets, including in the Americas and Europe, provides a strong platform for growth in the medium term. We are excited about what the future holds and the many opportunities ahead of us.”
Snaitech will join Flutter’s other brands, FanDuel, Betfair, PokerStars, Sky Betting & Gaming, and Paddy Power. The deal is expected to close in the second quarter of 2025.
Could Penn Be Next?
The natives are restless regarding Penn Entertainment’s struggling mobile online presence. And by natives, we mean stockholders. The land-based casino operator has struggled to make significant traction in the mobile sports betting market and has spent significant money searching for the right recipe.
The company initially spent $550 million to buy the Barstool Sports media brand with the express intention of using the company’s name and influence with a young male demographic to create the Barstool Sportsbook.
The ESPN Deal
However, when it became aware that ESPN would be willing to make a deal with an online gaming operator for the use of its name and access to its TV and digital platforms, that was an offer too tempting to ignore. This triggered a 10-year, $1.5 billion deal with the stipulation by the sports media giant that Penn would have to divest itself entirely from the controversial Barstool brand for which it paid half a billion dollars less than six months prior.
Penn obliged, agreeing to sell the Barstool media brand back to the founder, Dave Portnoy, for $1 and the guarantee it would receive 50% of the profits should Portnoy ever sell it. The Barstool Sportsbook was subsequently shut down, and ESPNBET was born.
But ESPNBET’s market share has been underwhelming, and Penn Entertainment’s stock has plummeted from a high of $130.47 in 2021 to where it currently stands at $19.43.
Recently, rumors have swirled that Flutter may have an interest in acquiring Penn, which may or may not include its land-based casinos as well as its mobile sports betting platform. A formal offer has not yet been tendered, according to industry sources.
