In a move that could make even the most seasoned gamblers raise an eyebrow, Flutter Entertainment is eyeing Italy's national lottery license, valued at a cool €1.5 billion ($1.6 billion). With the bidding deadline looming, the Italian Agency of Customs and Monopolies has set the minimum bid at €1 billion ($1.089 billion).
This isn't just any lottery; it's Italy's largest and oldest, boasting one of the world's highest player participation rates and revenues.
Flutter, keeping its cards close to its chest, hasn't officially confirmed its bid. However, whispers in the industry suggest they're entering the fray through their Italian lottery arm, Sisal. Teaming up with Scientific Games and private equity firm Brookfield, Flutter seems to be stacking the deck in its favor.
CEO Peter Jackson previously expressed interest in this lucrative opportunity, and the company's recent acquisition of Snaitech for €2.3 billion ($2.5 billion) further cements its Italian ambitions.
But it's not all smooth sailing. Italy's strict ban on online gambling advertising poses a challenge. Yet, the current regulations allow operators to promote additional products through features like ticket scanning. Morgan Stanley notes that these cross-selling opportunities make the license particularly enticing, as online players typically generate ten times more revenue than retail participants. Critics, however, argue that such practices could lead to harmful gambling behaviors, urging regulators to tighten the reins with the new license.
As the bidding deadline approaches, all eyes are on Flutter. Will they hit the jackpot or find themselves betting against the house?
