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Lottomatica Expands its Italian Presence with €310 Million Online AcquisitionLottomatica strengthened its presence in the Italian online casino and betting space by acquiring a local brand, Betflag. The deal sees the company own 100% of Betflag for €310 million plus performance incentives.
In 2021 International Game Technology (IGT) relinquished ownership of its Italian-facing online gambling divisions, Lottomatica Videolot Rete S.p.A. and Lottomatica Scommesse.
At the time IGT chief Marco Sala said:
“The transaction enables IGT to monetise its leadership positions in the Italian B2C gaming machine, sports betting, and digital spaces at an attractive multiple to comparable Italian transactions, providing us with enhanced financial flexibility.”
The €950 million deal saw the Gamenet Group acquire a 100% stake in both gambling businesses, taking control of the entities in December 2021.
From Strength to Strength
While IGT announced that the initial deal allowed them to monetise their Italian market value, the Lottomatica brand is the one shaking things up with their first Italian-facing acquisition.
The company announced its first acquisition as an independent business. The deal will see Lottomatica acquire 100% of the Rome-based online casino and sports betting brand, Betflag.
A Lottomatica spokesperson told the media:
“The transaction allows Lottomatica Group to consolidate its presence in the Italian market, particularly strengthening its position in the online casino games sector and represents a key milestone for the group’s multi-brand strategy, aimed at ensuring full coverage of the different product verticals and the different player clusters.”
The deal consists of an initial purchase amount of €310 million, with the potential for a performance-based bonus worth up to €50 million based on their 2023/24 margins.
There May Be More to Come
Based on the acquisition of Betflag and the commentary regarding the specific skills and insights it adds to the Lottomatica group, the company is clearly looking to become a significant player in the European online casino space with Italy as its HQ.
Commenting on their growth strategy earlier in the year, Lottomatica chief financial officer Laurence van Lancker said:
“We are actively monitoring the market, assessing those assets with the same approach we have previously discussed. We don’t want to make acquisitions for the sake of EBITDA or the sake of growth. We want profitable, sustainable, and disciplined growth – but we keep on being very active in this space.”
It will be of interest to the entire Italian casino market, which entities Lottomatica set its sights on next in pursuing more audience data, greater market penetration, and fleshing out its leadership skills.
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