Flutter Entertainment Purchases Sisal for €1.91b
Despite predictions of fiscal headwinds, Flutter Entertainment, the company behind brands such as Betfair, Paddy Power, FanDuel, and PokerStars, has completed the purchase of Sisal, the Italian lottery and iGaming operator, for €1.91 billion.
The acquisition of Italy’s leading online gaming operator, in an attractive and fast-growing online market, is aligned to [our group] strategy of investing to build leadership positions in regulated markets.
Sisal was sold by private equity CVC Capital Partners. Sisal is the current licensee for Italy’s SuperEnalotto national lottery and it also runs lotteries in Morocco and Turkey. Recently, Sisal become known to English gamblers as one of the four companies shortlisted to run the UK National Lottery.
The idea of acquiring Sisal was first put forward by Flutter in December 2021 and since then Sisal has been performing strongly. Its revenue for the first half of 2022 was up by close to 60% year-on-year and reached €476.68 million. Furthermore, EBITDA over the same period grew to €142.29 million, up 51% compared to 2021.
Sisal operates more than 1,700 shops and 39,000 retail points, which go a long way towards reducing the impact of existing and upcoming gambling bans, and made the deal even more attractive for Flutter.
Flutter already has several well-established brands in Italy, including Betfair and PokerStars, and with the addition of Sisal, the operator now has 20% of Italy’s iGaming market. Italy is the second largest regulated gambling market in Europe after the UK and in 2019 it had total gross gaming revenue of €19 billion.