Irish-based gaming superpower Flutter have been outbid by International Gaming Technology (IGT) to run one of the world’s most lucrative lottery licenses.
IGT Lands €2.23 Billion Deal To Operate Italian Lotto
Earlier this year, Flutter were considered favourites in the race to land the lottery license before IGT swooped in with an offer Italian regulators simply could not refuse.
Flutter’s bid for the Italian lottery was met with some backlash from gambling harm charities who expressed concern regarding cross-selling from the lottery to sports betting or online casino products.
Italy’s national lottery license is one of the most lucrative on the planet, valued at an estimated €1.5 billion and the country’s Customs and Monopolies Agency had set a minimum tender bid of €1 billion.
IGT’s winning bid is set to be paid in three instalments between now and April 2026, with the first two of €500 million and €300 million to be submitted before the end of the calendar year.
IGT will now hold the LottoItalia license for nine years, which is expected to generate €4.3 billion in revenue. The Las Vegas-based firm has operated the Italian lottery since 1993 and will continue to do so.
Over a six-year period between 2016 and 2022, IGT contributed €9.6 billion in tax – an average of €1.6 billion per year.
Since IGT took over operations in the 1990s, LottoItalia has grown significantly with reported collections rising from €2.5 billion to €7.6 billion in 2022.
Flutter Dealt Significant Blow In Bid To Expand Across Italy
Flutter has been targeting the Italian markets for some time now. Back in 2021 it acquired Sisai – a major Italian gaming firm and operator of the Tunisian and Moroccan national lotteries.
It also recently completed a takeover of Italy’s third-largest gaming firm Snaitech from a subsidiary of UK-based Playtech.
Internationally, Flutter has been expanding everywhere you look – securing Georgia’s Adjarabet in 2019 and investing $350 million in Brazil’s Betnacional last year.
Flutter own some of the biggest UK online casinos such as Paddy Power, Sky Bet and Betfair.
Not to mention one of the leading USA online casinos in FanDuel.
Joe Lyons is a betting industry writer for GamblingIndustryNews with years of experience on reputable sports and gambling websites. Joe has also been published by Nottingham Forest, working with the academy and senior teams to produce content on matchdays. He formerly covered the Premier League and EFL as an on-site reporter during the 2020/21 season for Prost International. He is an expert in a range of sports including soccer, basketball, horse racing and American football. Joe specialises in long form content alongside news, tips and betting.
