FanDuel parent acquires Playtech's Italian gambling segment

Flutter Entertainment (FLUT), the parent company of the sports-betting platform FanDuel, has agreed to purchase Playtech's (PTEC.L) Italian gambling business for $2.6 billion. This move comes after Flutter purchased a majority stake in the NSX Group, Brazil's fourth-largest online gambling operator.

Catalysts Hosts Seana Smith and Madison Mills report more on the story as Flutter looks to expand further into Europe.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Melanie Riehl

Video Transcript

Now time for some of today's trending ticker skin, the QR code below to track the best and the worst performing stocks of the session with Yahoo Finance is trending tickers page looking first at Flutter Entertainment which owns and operates Fanduel.

The sports betting platform has agreed to purchase a Playtex Italian gambling unit for $2.6 billion.

Now, this comes after Flutter purchased a majority stake in the NSX group.

Brazil's 1/4 largest online gambling operator and Mattie.

This is very much a continuation of the same or similar moves that we have seen since Flooder capitalizing on this momentum that they're certainly seeing here in the US, expanding overseas.

And it's also something we talked to Barclays analyst about last week, just the M and A the possibility what exactly that pipeline looks like.

And he very much signal that we would be seeing deals like this as Flooder does look to expand further and and expand further into Europe.

So again, this move, I would think would be a welcomed one from the street and that could be a big reason why we are looking at shares up nearly 2% here.

This morning.

Yes, it's interesting because to your point, it is kind of a continuation of movement we've already seen from Flutter really focusing on expanding internationally, which is certainly something that came up during our conversation with the analyst over at bar.

It's interesting to, to point out that the value of gambling deals and joint ventures globally has quadrupled in the last month according to an analyst over at Bloomberg Intelligence.

So it makes sense that Flutter is expanding internationally.

Having said that in that chat with Barclays, the analyst did mention too that some of the kind of legacy players in this space.

One that I was asking about specifically was Fox.

If they do start to kind of get ahead and start to really get in on a game that they kind of been behind on, actually, when it comes to sports betting, that could potentially lead to a little bit more competition for some of these newer names who are legacy within the sports betting space, but they're not as much legacy names in the broader media and entertainment space.

So that could potentially be a head wind for a name like Flutter moving forward if we do see more of that activity moving forward here.