Paddy Power owner Flutter buys leading Italian online gaming firm

Flutter said the deal “fully aligns” with its strategy of investing to build leadership positions in regulated markets globally. File picture: Denis Minihane.

Paddy Power owner Flutter Entertainment has acquired Sisal, the leading online gaming operator in Italy, for just over €1.9bn.

The Irish betting and gaming group is buying the business from a fund run by private equity giant CVC Capital Partners.

Flutter said the deal “fully aligns” with its strategy of investing to build leadership positions in regulated markets globally. It hugely enhances the company’s position in the Italian market.

While much of Flutter’s recent growth has been focused on its US operations, it recently added to its UK business by buying online bingo operator Tombola for €478m.

Sisal is expected to generate earnings of around €248m this year. The Milan-based business generates the bulk of its earnings in Italy, with Turkey and Morocco smaller markets. The company employs 2,500 people.

“I am delighted to add Sisal, Italy’s leading gaming brand, to the Group as we look to attain a gold medal position in the Italian market. 

For some time we have wanted to pursue this market opportunity via an omni-channel strategy and this acquisition will ideally position us to do so,” said Flutter chief executive Peter Jackson.