Flutter Entertainment has hit the headlines again as it looks poised to win the race to operate Italy’s national lottery license ahead of the March 17th bidding deadline.
Rumors are swirling about a speculative joint bid that could see Flutter also partnering with the Italian in-house gambling and payment service provider, Sisal.
Flutter, who recently announced its listing on the New York Stock Exchange in January, has so far refused to speculate on its bid tactics to try to woo Italian regulators. Flutter’s Chief Financial Officer Rob Coldrake stated in a call with analysts, “We’re not going to talk about our bidding strategy. It’s commercially sensitive.”
Italy’s national lottery license is widely regarded as a highly sought-after asset, with estimates valuing the franchise at approximately €1.5 billion ($1.6 billion). However, it does come at a price, as the country’s Customs and Monopolies Agency has set a minimum bid tender of €1 billion ($1.089 billion) to secure the green light to run its operation.
This comes hot on the heels of Flutter’s bid to strengthen its foothold in the Italian market, having already acquired Snaitech – a leading concessionary within Italy’s gaming and betting sectors – last year for €2.3 billion ($2.5 billion).
Italian NGOs Raise Cross-Selling Warning Flags
If successful, Flutter’s growing dominance in the region’s gambling industry may intensify aspersions that the firms will employ aggressive cross-selling strategies between the Snaitech and Sisal brands.
Critics, which include NGO, the National Campaign against the Risks of Gambling, have already proposed the need for stricter regulations to be enforced should Flutter, secure Italy’s national lottery license.
The scrutiny comes as they argue the flurry of additional gambling products likely to be integrated into Italy’s lottery system will not only create a surplus of excessive gambling promotions, but will also increase problem gambling.
Despite these concerns, Flutter remains a firm favorite for securing the Italian lottery license, which industry analysts already regarded as one of the world’s most lucrative lottery markets.
Building on Flutter’s international expansion momentum, should the acquisition succeed, the Italian national lottery will significantly expand its European footprint even further.