Flutter Outbid By IGT To Operate Italy’s Main Lottery License
In a significant development within the global gambling landscape, Flutter, the Irish-based gaming giant, has been outbid by International Gaming Technology (IGT) for one of the world’s most coveted lottery licenses.
IGT Secures €2.23 Billion Contract for Italian Lotto
Earlier this year, Flutter was widely regarded as the frontrunner to acquire Italy’s national lottery license. However, IGT’s compelling bid caught the attention of Italian regulators, leading to a deal they found irresistible.
Flutter’s attempt to secure the lottery was met with criticism from gambling harm advocacy groups. Concerns were raised about potential cross-selling tactics between lottery products and sports betting or online casino offerings, prompting dialogues on responsible gambling practices in the industry.
The Italian lottery license, valued at approximately €1.5 billion, stands as one of the most lucrative in the world. Italy’s Customs and Monopolies Agency had established a minimum tender bid of €1 billion, setting the stage for intense competition among operators.
IGT’s winning offer is structured to be paid in three installments by April 2026, commencing with €500 million followed by €300 million, both due before the year’s end. This strategic financial planning underlines IGT’s commitment to maintaining and expanding their presence in Italy’s gaming market.
Holding the LottoItalia license for the next nine years, IGT anticipates generating approximately €4.3 billion in revenue during this period. The Las Vegas-based firm has a long-standing history with the Italian lottery, having managed its operations since 1993.
From 2016 to 2022, IGT has significantly contributed to public funds, remitting €9.6 billion in taxes—averaging €1.6 billion each year. This track record not only demonstrates IGT’s fiscal responsibility but also its integral role in the Italian economy.
Under IGT’s stewardship, LottoItalia has flourished, with collections soaring from €2.5 billion in the early 1990s to an impressive €7.6 billion in 2022. This growth showcases the effectiveness of IGT’s operational strategies and market penetration over the past few decades.
Flutter Faces Major Setback in Italian Market Expansion
Flutter has long sought to strengthen its foothold in the Italian gambling market. In 2021, the company acquired Sisai, a prominent Italian gaming firm that also operates the national lotteries in Tunisia and Morocco.
Moreover, Flutter recently finalized its acquisition of Snaitech, Italy’s third-largest gaming operator, previously owned by the UK-based Playtech. These moves illustrate Flutter’s aggressive strategy to diversify and dominate international markets.
Globally, Flutter’s reach continues to expand, evident from its acquisition of Georgia’s Adjarabet in 2019 and a major investment of $350 million in Brazil’s Betnacional last year. Domestically, Flutter owns and operates leading UK online casinos such as Paddy Power, Sky Bet, and Betfair, along with one of the premiere online gambling platforms in the USA, FanDuel.
As the competition for lottery and gaming licenses becomes increasingly fierce, operators like Flutter and IGT must navigate a complex landscape that balances innovation with regulatory compliance and responsible gaming practices.
In summary, IGT’s successful bid for the Italian Lotto not only solidifies its position in the industry but also serves as a reminder of the evolving dynamics in the global gambling sector. As companies vie for dominance in various markets, staying attuned to emerging trends and maintaining a commitment to corporate responsibility will be essential for sustained growth and success.
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Author: Joe Lyons
Joe Lyons is a seasoned writer in the betting industry, contributing to GamblingIndustryNews with extensive experience across various reputable sports and gambling platforms. With a background that includes producing content for Nottingham Forest and covering the Premier League and EFL, Joe brings valuable insights into various sports, including soccer, basketball, horse racing, and American football. He specializes in in-depth analyses, news articles, and betting tips.
