Playtech gambles with £738m plunge into Italian betting market

Gaming software giant Playtech took a major punt on the fast-growing Italian market on Thursday, gobbling up betting and gaming operator Snaitech for €846 million (£738 million).

Its swoop for a 70.6% stake in the firm gives the Israeli-based giant a significant foothold in one of Europe’s biggest betting markets, worth some €20 billion a year, but with major scope for online growth.

Less than 10% of gambling in the fragmented Italian market is online, compared with 40% in the UK, which Playtech hopes will offer scope for rapid growth.

It also increases Playtech’s exposure to the retail market as Snai has a network of franchised betting shops and betting machines, while bolstering revenues from more certain, regulated markets.

Snaitech generated €890 million in revenues last year, generating profits of €136 million. Playtech also reckons it can draw out €10 million in cost savings though the deal.

Shore Capital’s Greg Johnson said: “Although the market may harbour some concerns over retail exposure, the opportunity is to build a material online offering with the Italian retail model also mainly franchised.”

Playtech was founded by Israeli tycoon Teddy Sagi, who has been selling down his stake to invest in real estate.