Flutter Entertainment is preparing to withdraw its Betfair Exchange, Sportsbook and Casino products from Italy after regulatory changes rendered its betting exchange business commercially unviable, while retaining its presence through Sisal, Snai and PokerStars.
The closure comes amid operational changes at Flutter, including the integration of its Italian acquisitions and cost-reduction measures following a decline in group profitability. The company has not specified when Betfair will cease operations or which regulatory provisions directly prompted the decision.
“Recent regulatory changes in Italy have made the Betfair Exchange product no longer commercially sustainable. As a result, Flutter has also decided to soon discontinue the Betfair Sportsbook and Casino product in the Italian market. This represents a very small proportion of our revenue in Italy and will have no impact on our other brands or employees based in Italy,” a Flutter spokesperson said.
Italy introduced a revised online gambling framework under Legislative Decree No. 41 of March 2024, requiring operators to obtain separate licenses for individual brands. Each license costs €7 million ($7.79 million) and remains valid for up to nine years. Revised player protection, compliance, and platform operating requirements were also introduced.
Flutter secured five licenses in September 2025, ahead of the new concessions taking effect on November 13 of that year. Under the framework, betting exchanges such as Betfair are also subject to fixed-odds betting regulations.
Unlike traditional sportsbooks, Betfair Exchange allows customers to wager against one another, backing or opposing outcomes while the operator collects commissions on winning bets. Its viability depends on sufficient betting liquidity, although Flutter has not identified whether licensing costs, exchange regulations or other requirements caused the closure.
Despite the withdrawal, Italy remains an important market for Flutter following its acquisitions of Sisal in 2021 and Snaitech in 2024, with the latter transaction closing in April 2025.
The company transferred Snai customers to Sisal’s technology platform in April 2026 as part of its integration and cost-reduction program. Sisal subsequently recorded its highest market share in June.
Flutter’s Southern Europe and Africa division, which includes Italy, reported 36% year-over-year revenue growth to $896 million during the first half of 2026, making it the group’s third-largest region.
Groupwide second-quarter revenue increased 3% to $4.33 billion, although adjusted EBITDA declined 45% to $508 million. Flutter posted a $296 million net loss, compared with a $37 million profit a year earlier.
The decline reflected weaker US profitability, higher marketing spending, increased UK gambling taxes, historical tax provisions in India and the US, and acquisition-related financing and depreciation costs. Flutter announced further cost reductions in August, while Dan Taylor succeeded Peter Jackson as Group CEO on October 1.
Meanwhile, Italy’s Finance Ministry expects €1 billion ($1.11 billion) in gambling tax revenue during 2027-2028. Flutter could also pursue a proposed scratchcard concession through Sisal, potentially competing with the LottoItalia consortium comprising Allwyn, Arianna 2001, Novomatic Italia and IGT, should the Meloni government proceed with the tender.