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Flutter Entertainment will withdraw Betfair Exchange, Sportsbook and Casino from Italy after regulatory changes made its exchange business commercially unviable. Sisal, Snai and PokerStars will continue operating in the country.
Good to know
- Flutter has not announced a closure date for the three Betfair products.
- The company says the withdrawal will not affect its other Italian brands or employees based in Italy.
- Italian online gambling licenses cost €7 million per brand and last up to nine years.
Italy remains an important business for Flutter despite the Betfair exit. The company has built its presence through Sisal and Snaitech, completing the latter acquisition in April 2025.
Integration has already progressed. Flutter transferred Snai customers to the Sisal technology platform in April 2026 as part of its cost-reduction program. Sisal then recorded its highest market share in June.
Why Flutter Is Closing Betfair in Italy
Flutter attributed the decision to regulatory changes but did not identify the specific provisions behind it.
“Recent regulatory changes in Italy have made the Betfair Exchange product no longer commercially sustainable. As a result, Flutter has also decided to soon discontinue the Betfair Sportsbook and Casino product in the Italian market,” a spokesperson said.
The company described the affected products as a very small part of its Italian revenue.
Betfair Exchange operates differently from a traditional sportsbook. Customers bet against one another, either backing an outcome or opposing it, while Betfair collects commission on winning bets. The model needs enough customer activity to match wagers.
However, Flutter has not said whether liquidity, licensing costs, exchange rules or other compliance requirements determined its decision.
Italy introduced its revised online gambling framework through Legislative Decree No. 41 in March 2024. Operators must obtain separate licenses for individual brands, each costing €7 million ($7.79 million) and lasting up to nine years.
The framework also introduced updated player protection, compliance and platform requirements. Betting exchanges fall under fixed-odds betting regulations.
Flutter secured five licenses in September 2025 before the new concessions took effect on November 13 that year.
Regional Growth Continues as Group Profit Falls
The Betfair withdrawal comes during a wider effort to integrate acquisitions and reduce costs.
Southern Europe and Africa, which includes Italy, generated $896 million in revenue during the first half of 2026, up 36% year on year. It ranked as the third-largest Flutter region.
Across the group, however, second-quarter revenue growth did not translate into higher earnings. Revenue increased 3% to $4.33 billion, while adjusted EBITDA fell 45% to $508 million. Flutter recorded a $296 million net loss against a $37 million profit a year earlier.
Weaker US profitability, higher marketing spending and increased UK gambling taxes contributed to the decline. Historical tax provisions in India and the US, alongside acquisition-related financing and depreciation costs, also affected results.
Flutter announced further cost reductions in August. Dan Taylor subsequently succeeded Peter Jackson as Group CEO on October 1.
Meanwhile, Sisal could offer another route for investment in Italy. Flutter may pursue a proposed scratchcard concession if the Meloni government proceeds with a tender.
Potential competition includes LottoItalia, a consortium comprising Allwyn, Arianna 2001, Novomatic Italia and IGT. The Italian Finance Ministry expects €1 billion ($1.11 billion) in gambling tax revenue during 2027–2028.
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