Flutter Entertainment is considering bidding for Italy’s main lottery license, a contract worth around €4.3 billion.
The Italian Customs and Monopolies Agency (ADM), which regulates gambling in Italy, has launched a bidding process for the nine-year license, setting a minimum bid requirement of €1 billion.
One of the oldest licenses in the country has been held by International Game Technology (IGT), formerly Lottomatica Holdings, for the past 30 years. The current license expires in November 2025.
According to The Irish Times, Flutter is evaluating its options for the bid, including the possibility of partnering with another entity or forming a consortium to share the financial responsibilities.
Flutter CEO Peter Jackson has previously expressed interest in the Italian lottery license, saying last year that the company would pursue the opportunity if it made economic sense.
While no final decision has been made, the application deadline is set for March 17, leaving Flutter and other potential bidders with limited time to formulate strategies.
Flutter’s interest in the Italian lottery is driven by the cross-selling opportunities it provides. Through its existing local lottery operations under Sisal, acquired in 2022 for €1.9 billion, Flutter integrates lottery customers into its online gaming and sports betting platforms.
In addition to the Sisal acquisition, Flutter announced a deal in September 2024 to acquire Snaitech, the country’s third-largest online gaming company, from Playtech for £2.3 billion.
This strategy fits with Flutter’s broader business model in Italy, where direct advertising of online games remains banned, despite possible future changes. Cross-promotion through lottery ticket scanning remains a viable channel.
Incumbent operator IGT, meanwhile, is expected to apply to retain its license.
The new contract will provide the winning concessionaire with a 9% commission on turnover, up from the 6% commission under the current agreement. In 2023, the main lottery ticket sales reached €8 billion, highlighting the profitability of the license.
The deal, which is expected to be completed within a few months, will further increase Flutter’s market share, giving it a projected 30% share of online betting in Italy when combined with Sisal.
The move is also in line with Flutter’s long-term growth strategy, which includes expanding its global presence. While the company has largely focused on its US operations through FanDuel, it continues to target high-growth markets such as Italy and Brazil.
Flutter’s recent move to acquire a majority stake in Brazilian betting company NSX Group further underlines its commitment to geographic diversification.
How Flutter might approach the Italian lottery operation is unclear. Analysts suggest a partnership model could reduce the initial capital required.
This would spread the risk, allowing Flutter to focus on using the license to improve its broader gaming and betting operations. Additionally, the predictable cash flow from the lottery contract could also make such a venture attractive to other parties.
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