Flutter may face scrutiny during its fourth-quarter earnings call, especially after comments made by the local event organization Mettiamoci in gioco ("Let's join the game") and the national anti-usury advisory organization.
The two called on operators (not specifically Flutter, but the winners of the Italian national lottery Lotto) "not to adopt harmful and aggressive business strategies against vulnerable players."
The backdrop of this acquisition is Flutter's recent acquisition of the parent company of online casino operator Snaitech, Pluto (Italia). However, it is noteworthy that this acquisition has not yet been completed, and this move still requires final approval from regulatory authorities.
Flutter already owns Sisal, an Italian lottery brand acquired in April 2022, which is currently bidding for the Lotto franchise. Both parties in the article expressed concerns about "cross-selling behavior," where operators could guide lottery players to other gambling products, and industry analysts suspect this model will allow Flutter to cross-sell Sisal lottery customers (the brand that may become the owner of the national lottery license) to Snaitech's online casino games.
This bid was made after the Italian government changed its licensing strategy, which abolished the previous automatic renewal of franchises in favor of a tendering process; a similar situation occurred last year in the UK, where Allwyn obtained the license, which had been held by Camelot for nearly thirty years.
Industry analysts speculated last month about the "reasons" for the Snaitech acquisition, which had been included in the speculation range as early as September.
However, now, as seen in the UK, opposition lobbying groups have criticized this practice, calling the "Let's join the game" movement and the national anti-usury consultation organization's description of it as "harmful, aggressive business strategies," and claiming that using "physical sales networks and lotteries" for cross-selling is an exploitative act.
There are also indications of communication issues between the management teams of Snaitech and Sisal. This is purely speculative, but sources say such issues could raise concerns, especially before the fourth-quarter earnings call.
Flutter's public stance on the Italian cross-selling strategy remains to be seen. It is worth mentioning that, even against a backdrop of continuous anti-gambling lobbying and scrutiny, Flutter has been able to operate successfully in the UK.
