People walk past a banner celebrating the initial public offering of FanDuel’s parent company, Flutter Entertainment, outside the New York Stock Exchange on January 29, 2024.
Spencer Pratt | Getty Images
FanDuel Parent Company Flutter Entertainment It plans to spend $2.6 billion (2.3 billion euros) to buy Italian gambling company Snytec. PlaytechIt joins a series of deals aimed at spurring international growth.
In an email to CNBC, a Flutter spokesperson said the company is “excited” to add another leading brand to its portfolio in “Europe’s largest regulated market.”
The deal comes as Flutter continues to invest in top companies in regulated markets around the world. Last week, the company acquired a majority stake in NSX Group, marking a major expansion into Brazil, where gambling will become regulated from January.
Italy is a particularly attractive market for Flutter, with total gaming revenue expected to reach approximately 21 billion euros in 2023. However, only about 21% of that revenue will come from online play.
Snai operates around 1,600 gambling shops and a range of online poker and casino games. Flutter is expanding its presence in the country. The company acquired Italian lottery and gaming operator Sisal in 2022 and reported its highest ever 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. Snai had about 10% market share in Italy last year and about 300,000 monthly active users, according to Flutter.
The company’s strong brand recognition is likely to be an advantage given Italy’s strict restrictions on advertising and marketing.
The British gaming company’s acquisition is just the latest in its expansion of its international presence: Flutter announced last week that it was acquiring a 56% stake in NSX Group for around $350 million, as well as the existing Betfair Brazil business.
NSX has brands such as Viet Nacional and ranks fourth in the Brazilian market..
In a statement announcing the deal, Flutter CEO Peter Jackson said the company expected the deal to provide “exciting avenues for future growth.”
The new business will be renamed Flutter Brazil and the transaction is expected to close in the second quarter of 2025.
The current “gray market” of gambling In Brazil, players have had free access to online gambling platforms without any formal regulation, but that will change on January 1st when new regulations and licensed gambling come into force.
Brazil is almost According to Flutter, total gaming revenue will reach $3 billion in 2023, with the market growing approximately 38% since 2018.
Flutter will face a lot of competition in the market.
In Brazil, 113 companies applied for licenses during the priority application period. MGM Resorts The company filed in partnership with Grupo Globo, the largest media group in Latin America. Global gaming giant Bet365 already has operations in Brazil and is expected to be a strong competitor.
Based in Massachusetts DraftKingsFanDuel’s main competitor in the United States remains focused on opportunities in its home market..
