People walk past banners outside the New York Stock Exchange on January 29, 2024, celebrating the initial public offering of Flutter Entertainment, the parent company of FanDuel.
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Fans Duel Parents trembling entertainment to acquire Italian gaming company Snaitech for $2.6 billion (€2.3 billion) Play with Tektronixadding a series of deals aimed at boosting international growth.
A Flutter spokesperson said in an email to CNBC that the company is “extremely excited” to add another leading brand to its portfolio in “Europe’s largest regulated market.”
The deal comes as Flutter drives investment in top companies in regulated markets around the world. Last week, the company took a major step in Brazil – which will regulate gambling starting in January – by buying a majority stake in NSX Group.
Italy is a particularly attractive market for Flutter, as the country’s total gaming revenue in 2023 will be approximately 21 billion euros.
Snai operates approximately 1,600 gambling parlors as well as a variety of online poker and casino games. Flutter has been expanding its influence in China: it also It acquired Italian lottery and gambling operator Sisal in 2022 and just reported a record second-quarter Italian online market share.
Flutter said it expects the Snai acquisition to close in the second quarter of 2025 and be immediately accretive to earnings per share. Flutter said Snai had nearly 10% market share in Italy last year, with nearly 300,000 monthly active users.
The company’s strong brand recognition could be an advantage given Italy’s tight restrictions on advertising and marketing.
The acquisition by the British gaming company is just the latest move to expand its international presence. Flutter said last week it would acquire a 56% stake in NSX Group and its existing Betfair Brazilian business for about $350 million.
NSX operates brands such as Betnacional and ranks fourth in the Brazilian market.
Flutter CEO Peter Jackson said in a statement when announcing the agreement that he expected the agreement to “open up an exciting path to future growth.”
The new business will be renamed Flutter Brazil, and the transaction is expected to be completed in the second quarter of 2025.
The current ‘grey market’ in gambling Existing in Brazil, players have unrestricted access to online betting platforms without the need for formal regulation. That will change on January 1, when new regulations and gambling licenses come into effect.
Brazil is close Flutter data shows that total gaming revenue will reach $3 billion by 2023, and the market has grown by about 38% since 2018.
Flutter will face a lot of market competition.
In Brazil, 113 companies have applied for licenses during the preferred application window. MGM Resorts Application has been made in partnership with Grupo Globo, the largest media group in Latin America. Global betting giant Bet365 already operates in Brazil and is expected to become a strong competitor.
Located in Massachusetts draft kingFanDuel’s main rivals in the U.S. remain focused on domestic market opportunities.
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