Italy’s national lottery licence is up for grabs, and Flutter Entertainment is among the strongest contenders for the deal, estimated to be worth €1.5 billion ($1.6 billion). The deadline for bids is set for Monday, with Italy’s Customs and Monopolies Agency requiring a minimum offer of €1 billion ($1.089 billion). The lottery, the country’s largest and oldest, is considered one of the most valuable in the world based on player participation and revenue.
Flutter has yet to confirm its bid but is widely expected to enter through its Italian lottery business, Sisal. By end of 2024, Flutter CEO Peter Jackson already expressed his interest in this lucrative opportunity. Now, the company has reportedly partnered with Scientific Games and private equity firm Brookfield to strengthen its position.
On a recent call with analysts, Flutter’s Chief Financial Officer Rob Coldrake did not disclose specific bidding plans. “We’re not going to talk about our bidding strategy. It’s commercially sensitive,” he said. “We will be very disciplined and to the extent that we go ahead, we will put on as good a show as we can.”
Alongside the potential bid, Flutter is expanding further in Italy. The company is acquiring Snaitech, another major lottery operator, in a €2.3 billion ($2.5 billion) deal. This move would solidify its presence in the Italian gambling market.
The lottery licence offers more than just direct sales. Despite Italy’s ban on online gambling ads, current rules allow operators to promote additional products using features like ticket scanning. Morgan Stanley has noted that cross-selling opportunities make the licence especially attractive, as online players typically generate 10 times the revenue of retail ones.
However, this aspect of the business has sparked criticism. NGOs, including the National Campaign against the Risks of Gambling, argue that cross-selling could lead to harmful gambling behavior. They claim that online players lose much more than those who participate in retail lotteries and are pushing for regulators to restrict such practices under the new licence.
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