JPMorgan Chase Supports Flutter Entertainment’s Purchase of Italian Gambling Business

JPMorgan Chase & Co. reportedly launched a $500 million leveraged loan and plans to sell $2.3 billion in high-yield bonds to support Flutter Entertainment’s purchase of Playtech’s Italian gambling business called Snaitech.

Flutter Entertainment, owner of FanDuel, tapped a bridge facility for the deal, which closed in late April, Bloomberg reported Monday (May 19).

The online sports betting and iGaming operator announced in a September press release that it planned to acquire Snaitech for cash consideration based on an enterprise value of 2.3 billion euros (about $2.6 billion).

It added that the addition of Snaitech to its existing Italian business would give Flutter Entertainment a 30% online share in the Italian market.

When announcing the completion of the acquisition in an April 30 press release, Flutter Entertainment said the move aligns with its strategy to invest in leadership positions in attractive international markets.

“Snai’s significant omnichannel presence brings strategically important assets to enhance Flutter’s position in Italy,” Flutter Entertainment CEO Peter Jackson said in the release. “The transaction fits perfectly with our strategy for value creating M&A and is expected to bring about significant growth opportunities for Snai by providing access to Flutter’s market leading products and capabilities.”

Flutter Entertainment announced in a Wednesday (May 14) press release that it completed the acquisition of an initial 56% stake in NSX Group, the Brazilian operator of the Betnacional brand, for cash consideration of $350 million.

The company said this deal would enhance its competitive position in the “newly regulated and fast growing” Brazilian market.

“The combination of NSX’s extensive local experience, alongside our existing Brazilian business and the advantages of the Flutter Edge, creates a compelling opportunity to capitalize on the exciting runway of future growth in Brazil,” Jackson said in the release.

Gaming platforms exhibit a higher degree of data readiness compared to other consumer-facing platform businesses, according to the PYMNTS Intelligence and Carat from Fiserv collaboration, “Data-Driven Advantage: How Gaming Merchants Can Accelerate Growth.”

The report found that 95% of analytics-led gaming platforms report revenue growth, significantly higher than other consumer-facing sectors, and that gaming platforms with dedicated analytics teams analyzing companywide data experienced a 9.6% average revenue increase between 2022 and 2023.