Flutter, the parent company of FanDuel, seeks international expansion through major acquisitions in Italy and Brazil.

• Flutter, the parent of FanDuel, is acquiring Italian gaming company Snaitech.
• Last week, Flutter announced a major deal in Brazil as it seeks expansion in international markets.
• In Europe, Italy is the largest regulated gaming market, and Brazil will follow suit as a regulated market next year.

The parent company of FanDuel will spend $2.6 billion (2.3 billion euros) to acquire Snaitech, an Italian gambling company, in a deal aimed at increasing international growth.

Flutter spokesperson stated in an email to CNBC that the company is "thrilled" to have another top brand join its portfolio "in Europe's largest regulated market."

Flutter has recently made a significant investment in regulated markets worldwide through its acquisition of a majority stake in NSX Group, which will commence regulated gambling in Brazil starting January.

Flutter has a significant opportunity in Italy, with a gross gaming revenue of 21 billion euros in 2023. However, only 21% of that revenue came from online play.

Snai operates approximately 1,600 gambling shops and various online poker and casino games. Flutter has been expanding its presence in the country, including acquiring Italian lottery and gaming operator Sisal in 2022 and recently reporting record online market share in Italy during the second quarter.

Flutter anticipates that the Snai acquisition will be completed in the second quarter of 2025, resulting in an immediate increase in earnings per share. Last year, Snai held a nearly 10% market share in Italy and had approximately 300,000 monthly active users.

Given Italy's strict advertising and marketing restrictions, the company's strong brand recognition may provide an advantage.

The British gaming company has recently acquired a 56% stake in NSX Group for about $350 million, as part of its efforts to expand its international presence.

Betnacional and other brands are operated by NSX, which holds the fourth position in the Brazilian market.

According to CEO Peter Jackson, Flutter anticipates "a thrilling path of future expansion" with the agreement.

The new business will be called Flutter Brazil, and the deal is predicted to be completed in the second quarter of 2025.

From January 1st, Brazil will implement new regulations and licensed gambling, putting an end to the current unregulated "gray market" for online betting.

In 2023, Brazil's gross gaming revenue was nearly $3 billion, and the market has grown by approximately 38% since 2018, as stated by Flutter.

Flutter will face a lot of competition in the market.

In Brazil, 113 companies have applied for licenses during a preferred application window. Among them is Grupo Globo, Latin America's largest media group, which has partnered with them. Bet365, a global gaming powerhouse, is already operating in Brazil and is expected to be a strong competitor.

FanDuel, a Massachusetts-based competitor of DraftKings in the U.S., continues to focus on opportunities within its home market.