Entertainment
Flutter Entertainment is reportedly considering challenging IGT for Italy’s main lottery license. According to sources, Flutter might join forces with another competitor if it truly wants to dispute IGT’s reign.
The Irish Giant Seeks Further Opportunities
Sources told The Irish Times that Flutter, which is owned by the Irish gambling company Paddy Power, might join the bidding for Italy’s oldest lottery license. The incumbent holder, gaming tech powerhouse IGT, has held this license for the past thirty years. The current license is set to expire in November this year.
The minimum bid for parties interested in participating in the race for the license has been set at EUR 1 billion, and companies will have until March 17 to submit a bid. The Italian Agency for Customers and Monopolies predicts that the next nine-lottery contract will have a gross value of EUR 4.3 billion.
An anonymous analyst told The Irish Times that Flutter might decide to bid alone or team up with another party before tackling the bidding. While the unnamed analyst said that the latter model would make sense, he was unable to confirm whether that would be the case.
Sources, meanwhile, confirmed that Flutter seems to be exploring opportunities for a joint bid with another company, or even a wider consortium. However, no decision had been made as of the time of the report.
Flutter Is Bullish on Italy
Flutter, in any case, is no stranger to Italy. The company, which operates the Italy-facing brand Sisal, already owns a lottery license. Sisal, which also offers online gaming and sports betting, leverages its lottery license to cross-sell, allowing lottery players to scan the back of their tickets.
Obtaining the main lottery license could potentially allow Flutter to double down on this strategy and bolster its cross-selling capabilities. Sources, however, suggested that the company’s management would likely remain financially disciplined during the bidding process and would not take unnecessary risks.
Analysts further highlighted Flutter’s interest in Italy by mentioning its clear focus on the country. Flutter acquired Sisal in 2022 for EUR 1.9 billion, securing a significant market share in one of Europe’s biggest gaming markets. Last year, on the other hand, Flutter acquired Snaitech, Italy’s third-largest iGaming company. By combining Sisal and Snaitech, Flutter would command a 30% iGaming market share in Italy.
In November, Flutter CEO Peter Jackson told The Irish Times representatives that the lottery bid was something his team was considering. He told the news outlet that Flutter would do it if it made economic sense.
Flutter has yet to release a new statement on the matter.
Flutter Was Impacted by Unfavorable Betting Results in America
In other news, Flutter was recently forced to revise its FY 2024 forecasts due to suboptimal NFL betting figures driven by an unusually high success rate for favorites. In its revised report, the company said that it expected its 2024 revenue to reach $5.78 billion, down from the prior range of $6.05-$6.25 billion.
The announcement caused Flutter’s stock to experience a slight decline.
Read More
Fiona Simmons