Playtech Responds to Media Speculation and Confirms Flutter Acquisition Discussion

Playtech has published a response to the media speculation regarding Flutter’s possible acquisition of Snaitech, in which it confirms that it was in “discussions with Flutter.” The response, published on August 14, also noted that Playtech had given Flutter a period of exclusivity to complete their diligence and finish all the paperwork regarding the transaction.

Estimated Sale Sits at Whopping £2 Billion

Even though the discussions are ongoing, Playtech noted that there was still no agreement on whether the £2 billion deal would go through. Playtech ended the media response by saying that “further announcements will be made as and when appropriate.”

• Playtech’s shares jumped as high as 22% after the news broke.

• Flutter’s shares went up by 10% on the same day.

• Snaitech, one of Italy’s largest gambling operators, was purchased by Playtech in 2018.

In its 2023 financial report, Snaitech reported €946.6 million ($1.05 billion) in revenue — a 5% year-over-year increase. According to Statista, Snaitech held a 13% share of Italy’s online gambling market at the end of 2023, while Lottomatica and Sisal had 21% and 15%, respectively.

Sisal is Also Owned by Flutter

The main reason why Flutter is looking to purchase Snaitech is to strengthen its market position in Italy. Currently, the company owns Sisal, and by acquiring Snaitech, Flutter’s share could reach 30% of the Italian market.

• Flutter acquired Sisal in 2022 for €1.9 billion ($2.09 billion).

• The company aims to grow its presence outside the US and UK markets.

• Flutter operates in over 20 countries worldwide, including ownership of FanDuel (US), Betfair, and Paddy Power (UK).

Recently, Flutter also announced two new board appointments: Christine M. McCarthy to the audit committee and Robert R. Bennett to the risk and sustainability committee.

Snaitech Isn’t the Only Brand Flutter Is Willing to Purchase

Flutter’s growth strategy extends beyond Italy. The company is rumored to be eyeing Penn Entertainment as another potential acquisition target, alongside Boyd Gaming.

• In June 2024, Reuters reported that Boyd Gaming expressed interest in acquiring Penn in a $9 billion deal.

• The interest followed investor dissatisfaction with Penn’s current strategy.

• Donerail Group, one of Penn’s investors, even issued an open letter calling for a strategic shift and suggesting a sale could unlock shareholder value.

After rumors of a potential sale surfaced, Penn’s shares jumped 20%.

The potential Snaitech deal, valued at £2 billion, underscores Flutter’s aggressive expansion strategy in international markets — with Italy poised to become one of its strongest footholds in Europe.