Flutter has added another vertical to its company with the purchase of Italian gaming operator Sisal. While Sisal has decent market share in Italy with an estimated 11.9 percent share of online gaming and sports betting revenue, including a 14.4 percent share of betting and an 8.8 percent of online casino. But the real attraction that interested Flutter is the lottery segment. Sisal has been running the Italian lottery since 1997 and recently won contracts in Turkey and Morocco. Sisal has applied to operate the U.K. Lottery now run by Camelot. The contract with Camelot is up in 2024 and most observers expect a new operator to be named prior to the expiration of the deal.
Flutter paid €1.913 billion (US$2.16 billion) for Sisal with has a significant retail footprint in Italy with an estimated 1,700 outlets and 40,000 points of sale. With the recent crackdown on gambling advertisements in Italy, this retail presence is becoming more valuable. Flutter says the acquisition aligns with its strategy of building leadership in regulated markets. Along with Flutter brands PokerStars and Betfair, the acquisition should give Flutter approximately 20 percent of the Italian online market. After the U.K., Italy is the second-largest gaming market in Europe.
Sisal says it will generate €248 million in EBITDA for the 12 months of 2021, with 58 percent coming from online and the remainder coming from retail and lottery. The company says it averages 300,000 online players each month, and a total of 9.5 million registered. The purchase is expected to close by the end of the second quarter of 2022.