Clash of Industry Titans as Flutter Challenges IGT for Italy’s Lottery

History of the Italian Lotto

Italy’s Lotto has roots dating back to the 18th century, when the first state-licensed numerical lotteries were officially introduced. Over time, Lotto became a staple of Italian culture and an essential source of public financing.

In the 1990s, the operation of the Italian Lotto was awarded to Lottomatica, a company later integrated into the U.S.-based lottery giant IGT following a series of mergers.

In 2016, International Game Technology (IGT), through its Italian subsidiary Lottomatica, founded the LottoItalia consortium in partnership with Italian Gaming Holding (later rebranded as Allwyn), Novomatic Italia, and Arianna 2001, a company linked to the Italian tobacconists’ federation.

That year, the consortium secured a nine-year concession to operate the Italian Lotto, with IGT holding a 61.5% controlling stake and assuming full operational control of the lottery.

Over the past nine years, LottoItalia has implemented more than 15 product innovations — including the successful launch of Million Day — while steadily upgrading the sales network. These developments helped generate nearly €15 billion in tax revenues for the Italian state.

Recognizing Lotto as one of its most reliable sources of budgetary income, Italy’s government views the upcoming concession as one of the most significant events in the European gambling sector in recent years.

Flutter Bets Big on Italy

Flutter Entertainment, known primarily for its dominance in sports betting markets in the US and UK, has been aggressively expanding its footprint across continental Europe.

The €1.9 billion acquisition of Sisal in 2022 positioned Flutter as a major player in Italy. In 2024, the company went even further by announcing the acquisition of Snaitech from Playtech for £2.3 billion. Upon completion of these deals, Flutter is expected to command around 30% of Italy’s online betting market.

Bidding for the Lotto concession is a logical extension of Flutter’s Italian strategy. Gaining control of Lotto would allow Flutter to integrate lottery customers into its broader gaming and betting ecosystem.

This strategy fits into Flutter’s broader business model in Italy, where direct advertising of online gambling remains strictly prohibited under the country’s “Decreto Dignità” law. While potential regulatory changes are under discussion, currently, cross-promotion through lottery-related channels remains one of the few viable and legally permissible marketing avenues.

To mitigate the financial risks of bidding — with the concession’s cost estimated between €1 billion and €1.5 billion — Flutter reportedly explored partnering with other entities. Talks reportedly involved Brookfield Asset Management and Scientific Games, although their official involvement remains unconfirmed.

IGT Defends a Key Stronghold

For IGT, the Italian Lotto concession represents a key pillar of its global business and standing within the industry. Despite a strong track record leading the LottoItalia consortium, the company now faces a significant challenge from Flutter’s growing presence.

Losing the concession would mean not only a major revenue setback in Italy but also a strategic reputational loss on the international stage — particularly after IGT lost the bid for the UK’s National Lottery to Allwyn, its former partner in the LottoItalia consortium.

Today, IGT maintains a dominant position in the Italian lottery sector, controlling approximately 93% of the market through its exclusive concessions for both Lotto and Instant Lotteries (Gratta e Vinci). The company’s Italian operations account for a substantial share of its global lottery revenues, serving over 21 million players through a network of 55,000 retail outlets and generating more than €20 billion in annual ticket sales.

With Lotto alone producing an annual turnover of approximately €8 billion, the contract provides IGT with a highly profitable and stable income stream — one that would be difficult to replace elsewhere.

The Tender Process and What Lies Ahead

The submission deadline for bids passed on 17 March 2025, with only two contenders entering the final stage: Flutter (via Sisal) and IGT (through LottoItalia).

The next steps of the tender process include:

• Evaluation of technical proposals by a commission appointed by the Customs and Monopolies Agency (ADM),

• Public opening of financial offers,

• Final selection based on the most economically advantageous offer, taking into account compliance with technical standards and investment commitments.

According to the tender rules, the selected operator must pay the concession amount in three installments: €500 million upon contract signing, €300 million upon assuming operational control in November 2025, and the remaining balance by the end of April 2026.

The winning operator will also be required to modernize the technology infrastructure, upgrade terminals, and meet the highest operational security standards as outlined in their technical submission.

Two Different Worlds Collide

The competition between Flutter and IGT for control of the Italian Lotto reflects a broader shift in the gambling industry.

On one side stands IGT’s traditional model: stable, long-term public contracts built on decades of operational expertise and close relationships with regulators. On the other side is Flutter’s aggressive, omnichannel approach — integrating lotteries, betting, and online gaming into a seamless consumer offering.

Flutter’s ambitions extend well beyond Italy. The company is building a global empire across the US, Europe, and Latin America, recently expanding into Brazil by acquiring a 56% stake in NSX Group. Securing the Lotto concession would mark a landmark victory, signaling that new-generation gambling operators are ready to challenge the long-standing dominance of traditional state lottery suppliers.

IGT, despite increasing competition, remains the world’s largest provider of lottery technology solutions, operating in over 40 jurisdictions. Retaining the Lotto concession would reaffirm its leadership position in the sector.

Although the final decision on the concession is expected in the coming months, the outcome will have ramifications far beyond Italy.