Flutter Acquires Snaitech for €2.3 Billion
Flutter Entertainment will acquire Italy-facing omnichannel operator Snaitech from Playtech for a total enterprise value of €2.30 billion ($2.56 billion).
The deal aligns with its strategy to “invest in leadership positions” in international markets. Snaitech will expand Flutter’s Italian operations, which already include PokerStars, Betfair, Tombola and Sisal, which it acquired in 2021. Up to €70 million in cost synergies is expected within three years.
Analysts have reacted positively to the acquisition and expect the deal to double Flutter’s market share in Italy. Jefferies estimates Flutter could end up with a 30 percent share of the Italian gaming market once the deal closes, thanks to its multi-brand positioning. It expects the group to maintain a top spot for online share.
Flutter had a 15 percent GGR share of the Italian online betting and iGaming market in 2023 through its Sisal and PokerStars brands. Snaitech comes in just behind on 10 percent. However, Snaitech reigns in retail betting with a 16 percent share.
Italian revenue currently makes up almost half (47 percent) of Flutter’s International division, says Barclays. It is also one of the operator’s “consolidate and invest” markets.
Playtech should net some cash from sale, even after paying a mammoth shareholder dividend of €1.7 billion-€1.8 billion. It has seemingly repositioned itself as a pure-play B2B behemoth on the back of the sale, giving it a simplified business structure and clear position in the market.
BGC Survey Predicts £2.7 Billion Bet Annually on U.K. Black Market
Up to £2.7 billion ($3.6 billion) is staked online with black market operators each year in the U.K., a survey commissioned by the Betting and Gaming Council (BGC) has reported. This translates to 2.1 percent of the £128 billion staked with locally regulated remote operators, the Frontier Economics report said.
The data shows “the unnerving true scale of the growing, unsafe, unregulated gambling black market,” the BGC has warned. Up to 5.4 percent of gamblers surveyed said they use both regulated and illegal operators in the UK, while 0.8 percent bet exclusively on the black market. It pooled data from over 6000 gamblers playing casino, bingo and sports betting online.
Of those that play on both legal and illegal sites, it found around 12 percent of their wallet was spent with illegal operators, totalling £2.0 billion a year. Those that exclusively used illegal sites spent £695 million annually. This could amount to tax losses of up to £335 million over the course of a five-year Parliament, the report warned.
Dutch Tax Hike Moves Ahead Despite Government Warnings
The Netherlands’ gambling tax hike is to be implemented in two phases, with licensees facing a 37.8 percent GGR tax from Jan. 1, 2026. The increase comes despite government-commissioned research warning it will push licensees out the market.
The tax rate, currently set at 30.5 percent, will initially jump to 34.2 percent of GGR on Jan.1, 2025. The full increase will come into effect from Jan. 1, 2026 and will hit all verticals and channels, from casinos and gambling halls to lottery and online. The government expects to generate additional tax revenue of €202m per year between 2025 and 2028.
A report by research agency Atlas Research warns the tax increase could push online operators to exit the market. Players could be pushed into betting via the black market, it said, as operators attempt to pass on the increased costs to players.
FDJ/Kindred Deal Approved; Acceptance Period Brought Forward
La Française des Jeux (FDJ) has brought forward the acceptance period for its acquisition of Kindred Group to Oct. 2 after securing all necessary regulatory approvals for the deal.
Its €2.45bn ($2.72 billion) bid to acquire Kindred was submitted back in January. At the time, it set an acceptance period of through to Nov. 19 this year – after which the offer would expire.
The French Competition authority (l’Autorité de la Concurrence) approved the bid earlier this week, but it warned FDJ against promoting commercial products to its lottery monopoly customers.
In its report on the Kindred deal, the competition authority expressed concerns over FDJ promoting and cross selling Kindred’s products to monopoly customers, as this could increase player risks.
