The parent company of Paddy Power, Flutter Entertainment, is reportedly on the verge of procuring Italy’s foremost online betting enterprise, Snaitech, in a potential deal worth around €2.3 billion. However, both entities have issued a warning, stating there’s no guarantee a deal will transpire.
Financial updates from Flutter showed the company’s profits during the three months up to June 30th were four times higher than the same timeframe last year, reaching €270 million.
A public announcement from Playtech, a London-based firm listed on the stock market, confirmed it is in discussions to sell its Italian gambling operation, Snaitech, to Flutter, a bookmaker and casino organisation operating from Dublin.
Playtech has afforded Flutter an exclusive window of opportunity for scrutinising the financial records of Snaitech and finalising acquisition documents. Nonetheless, separate alerts from both parties specified that there is no assurance a deal will come to pass, nor any indication of the potential terms.
Playtech promised to issue additional news updates on the matter as circumstances warrant. The British firm noted speculations estimating the likely cost of a Snaitech deal at approximately €2.3 billion. Flutter, which is registered on the New York stock market, corroborated the ongoing discussion and pledged to present updates when suitable.
Snaitech has a vast customer base for sports betting, casino play and slot machine games, with over two million daily online patrons according to the company website. Furthermore, it owns upwards of 1,600 betting locations in Italy alongside a couple of racetracks, including Milan’s San Siro. In addition, it has a stake in Epiqa, a horse racing broadcasting service, and Happybet, with branches in Austria and Germany.
Playtech, the existing owner of Snaitech, has a global reputation for developing online betting systems. Amongst their clientele are Fanduel, Paddy Power, Betfair and a selection of rival firms, all of them partner companies of Flutter group. The company operates across Europe, the Middle East and the US.
Following the public acknowledgement of the ongoing discussions, Playtech’s shares showed an impressive surge on the London stock market, rising over 14% to 614 pence sterling at the close of business Wednesday.
After Wednesday’s opening in New York, Flutter’s share prices experienced a dramatic surge. Following the release of the company’s newest financial records, stock value elevated over 12% to $214.80 at 9:35am local time, equivalent to 1:35pm in Ireland. Even though there was slight pullback from these profits, share price remained 8% above average, trading at $207.28 just before 5pm Irish time or 1pm in New York.
In May, Flutter altered its mainlisting to the New York market, relocating its head office in the process. The firm’s Dublin-based Clonskeagh office continues to be a major hub, and having incorporated in the Republic, Flutter still falls under their tax jurisdiction.
The US represents Flutter’s main and most rapidly developing sector. The Irish group anticipates their annual revenue to exceed $6 billion (€5.45 billion) in the US.
Flutter spearheaded the European invasion into the US betting market after the Supreme Court abolished statutes that prohibited individual states from endorsing sports betting. Post this ruling, 38 states have legalised the activity, with 30 enabling online participation.
Fanduel, a subsidiary of Flutter, is currently dominating the betting market. Revealed this week, it accrued revenues of $1.5 billion in the quarter ending in June.
Flutter possesses other notable betting platforms, such as Betfair, Sky Bet, Poker Stars and Australia’s Sports Bet. With footprints in over 80 countries, the company continues to expand its global presence.