The starting auction price is standing at $1.1 billion, although experts believe that the final price would be closer to $1.64 billion
In line with an earlier announcement, Flutter Group’s Sisal has joined the race for Italy’s oldest lottery license and is set to compete with international gaming powerhouse IGT. The latter company has held the license for a while and is unlikely to give it up easily.
Sisal’s Bid Is Backed by Scientific Games
The deadline for bids expired yesterday, leaving Sisal and IGT as the sole competitors for the prestigious concession. The Lotto concession is expected to generate almost $5 billion in revenue over nine years, making it a prime target for major companies such as Sisal and IGT.
The starting auction price is standing at $1.1 billion, although experts believe that the final price would be closer to $1.64 billion.
Sisal, which was acquired by Flutter in 2022, is no stranger to Italy. The company has managed SuperEnalotto for 27 years, although it has never operated the main lottery license. Should it secure the concession, Sisal will consolidate its presence in this key European region, reinforcing its footprint in the Old World.
The Flutter-owned brand has enjoyed a steady international growth, recently securing lottery licenses in Turkey and Morocco. As part of its business strategy, Sisal has been heavily focused on the digital sector and deploying cutting-edge technology across its business.
Sisal’s bid for the Italian lottery license is backed by Scientific Games, in line with previous rumors that Flutter will explore a joint bid.
Flutter Faces a Powerful Opponent
Despite its momentum, Sisal is facing a tough battle ahead of itself. IGT has held the Lotto concession since 1993 and is well trusted in Italy. In addition to that, its bid is being backed by Novomatic, the Czech lottery giant Allwyn, and the Italian Tobacco Federation (FIT).
As the custodian of the Lotto license, IGT has greatly expanded the lottery’s operations, increasing its revenue to $8.3 billion by 2022. In addition to that, IGT has been contributing roughly $1.4 billion in taxes a year for the past few years making it a valuable tax revenue driver.
To top it all off, IGT is well known for its responsible gambling commitments. Its Italian subsidiary, IGT Lottery, just obtained RG certification from European Lotteries (EL) for the sixth consecutive time.
Since the government will take the companies track record in mind when determining the outcome, the race for the Lotto concession is likely to be very heated. Italy is likely to determine the winner of the concession within a month.
Both IGT and Flutter Are in a Strong Position
Earlier this year, Flutter and IGT posted their 2024 reports, highlighting their continued strengths.
IGT, which published its report in February, outlined revenue of $651 million, down 4% year-on-year. Despite the modest decline, the company’s instant ticket and draw game sales remained very strong, marking a favorable position for the business.
Flutter, on the other hand, reported revenue of $3.79 billion for the quarter, up 14% year-on-year. The company remained confident in its business and posted an optimistic outlook for 2025.
