Flutter’s Sisal merges Italian operations into single entity

Sisal Italia will be the sole legal entity for the group’s Italian operations.

Italy.- Sisal, the Italian gaming operator acquired by UK-listed Flutter last August, has announced that it’s unifying its Italian operations into one single legal entity, named Sisal Italia SpA. The reorganisation will merge the lottery division Sisal Lottery Italia with the gaming business Sisal Entertainment.

Following the combination, parent company Sisal SpA will own 100 per cent of the new entity’s share capital. The new company will own 100 per cent of Sial Gaming Srl, which builds gaming software and develops, rents and manages gaming machines.

Flutter bought Sisal for €1.9bn in August last year as it aimed to expand its position in regulated markets internationally. The group has since won a sports betting tender in Morocco and a 10-year gaming contract in Tunisia.

The company runs the Italian national lottery and has a major presence in other gaming verticals. In 2022, it was the second largest online casino operator in Italy just below Lottomatica, with an 11.9 per cent market share.

For its part, Lottomatica SPA has reported revenue of €1.39bn for 2022, an increase of 72 per cent against comparative results the previous year. Partly responsible for the rise was the group’s 2021 merger with Gamenet Group, making it the biggest retail gambling operator in Italy.  

Just over half of revenue came from Lottomatica’s gaming franchise, up 93 per cent to €725m from wagers of €11bn. Meanwhile, revenue from its sports betting franchise also boomed despite it having to reduce the number of outlets. Revenue here hit €341m, up 122 per cent, from €2.53bn in bets.

The company’s owner, Apollo Global, plans to list Lottomatica on the Milan stock exchange sometime in the second quarter of the year. It’s reportedly aiming for a €5bn valuation, including the company’s corporate debt, which would probably make it the biggest listing on the Borsa Milan this year.