Peter Jackson, the CEO of Flutter Entertainment, has indicated interest in placing a proposal for Italy’s lucrative lottery license, which is worth more than €1 billion. Flutter may take advantage of the fact that International Game Technology’s (IGT) present contract is about to expire in a year to increase its market share in Italy.
In an interview with The Irish Times, Jackson alluded to Flutter’s possible offer by highlighting the similarities between online gambling and lottery operations. He pointed out that by including scannable links on lottery tickets, Flutter could get over Italy’s stringent prohibition on online gambling advertising.
“We don’t have to, but if it makes economic sense, we’ll do it,” Jackson remarked, reflecting the company’s measured approach to the bidding process.
Italy’s lottery system, managed by IGT through its Lotterie Nazionali and Lotto Italia subsidiaries, has been in operation for over three decades. The Italian government plans to launch a competitive tender for a new nine-year license, setting a minimum bid of €1 billion. Payments for the license will be made in installments.
Financial Strength Supports Ambitions
Flutter, the parent company of Paddy Power, Betfair, and FanDuel, is well-positioned for such a significant investment. The company recently reported a 27% revenue increase in the third quarter, reaching $3.25 billion. This exceeded analysts’ expectations by $150 million. Furthermore, Flutter’s adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) surged by 74%, hitting $450 million.
This financial momentum provides Flutter with the resources and confidence to pursue major growth opportunities like the Italian lottery license.
Securing the Italian lottery license would allow Flutter to expand its reach in one of Europe’s largest gaming markets. By blending traditional lottery services with its digital offerings, Flutter could further solidify its leadership in the gambling industry.
The decision to bid will depend on whether the opportunity aligns with Flutter’s economic and strategic goals, but the potential benefits could mark a significant milestone for the company.
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