Arthur Cox counsels on Italian gambling operator acquisition | ICLG

The acquisition will enable the buyer to benefit from Europe’s largest regulated gambling market&rs…

The acquisition will enable the buyer to benefit from Europe’s largest regulated gambling market’s anticipated growth online.  

Irish law firm Arthur Cox has provided legal counsel to sports betting and gaming company Flutter Entertainment on its EUR 2.3 billion acquisition from online gaming software supplier Playtech of Italian omni-channel operator Snaitech (Snai).

The Arthur Cox advisory team was headed by corporate and M&A partners Maura McLaughlin and Conor McCarthy, and comprised additional members of the corporate and M&A practice, as well as the competition and regulated markets, tax, and technology and innovation teams. Italian law firm Chiomenti served as Italian legal counsel to Flutter.

Chief executive of Flutter Peter Jackson commented on the acquisition: “This transaction is compelling strategically and financially. It fits perfectly within our strategy for value-creating M&A and creates a significant opportunity to accelerate Snai’s growth by providing them with access to Flutter’s market-leading products and capabilities both in the US and globally. I look forward to welcoming the Snai team to the Flutter Group and working with them to maximise the growth opportunity for our combined businesses.”

Playtech subsidiary and Milan-based Snai is Italy’s third-top operator in the gaming and betting industry, with just below a 10% market share and adjusted earnings of EUR 265 million in 2023 (prior to tax, interest, depreciation and amortisation) and EUR 947 million in 100% regulated revenue.

Online gambling is currently a less popular option in Italy, despite the country hosting Europe’s largest regulated gambling market. Flutter’s acquisition of Snai will provide the former with a 30% online share, enabling Flutter to benefit from the anticipated 10% growth in Italy’s online gambling market during the next three years.

A team of analysts, including Paul Ruddy, from Irish stockbroker, wealth and asset manager and financial advisory firm Davy noted: “Given the importance of dominant market positions, the additional exposure to the attractive Italian market and the quantum of the synergies, we believe this deal will be well received by the market. Post this transaction and the recent deal in Brazil, Flutter will be in the enviable position of having number 1 or podium positions in most of the world’s regulated gambling markets.”

The transaction is due to close by quarter two 2025.