Lottomatica, Italy’s largest lottery and online gaming operator, has solidified its dominance in the Italian market, achieving a milestone 30% share in the online gambling sector. This achievement follows its acquisition of SKS365, completed in November 2023, which added the popular online gaming brand PlanetWin365 to its portfolio. The move has propelled Lottomatica to record levels in both sports betting and iGaming, further cementing its standing as a key player in Italy’s competitive gambling landscape.
SKS365 Integration Accelerates Growth
Lottomatica’s CEO, Guglielmo Angelozzi, praised the company’s strong performance in 2024, citing double-digit growth and rapid progress in integrating SKS365’s assets. He noted, “Our business has experienced double-digit growth, and in Q3 our online market share reached an all-time high across all verticals.” The integration has also led to an increase in projected synergies, now expected to reach €75 million, with half already realized.
The acquisition has provided Lottomatica with a substantial boost in online gambling, especially in sports betting and casino games. With this integration well underway, Lottomatica’s revenue and EBITDA figures reflect the impact of this strategic move, ensuring its lead in the Italian market.
Strong Financial Performance Despite Profit Dip
For the first nine months of 2024, Lottomatica’s financial results underscore its growth trajectory. Total revenues reached €1.42 billion, marking a 19% increase from the previous year, with adjusted EBITDA rising by 13% to €483.1 million. Online betting was a major contributor to this growth, seeing a remarkable 48% increase in bets, which reached €17.1 billion out of a total €27.8 billion in wagers.
Despite robust revenue growth, net profit decreased slightly to €57 million, down from €67.3 million in the previous year. Nevertheless, Lottomatica remains optimistic about 2024, expecting annual revenues to land between €2.03 billion and €2.08 billion, with adjusted EBITDA projected between €700 million and €730 million.
Lottomatica’s latest figures reveal a 31.5% market share in sports betting and 29.7% in iGaming, with both sectors experiencing a 1.5 percentage point growth year-over-year. The acquisition of SKS365 and its rapid integration have proven instrumental in bolstering Lottomatica’s market dominance.
Consolidation in Italy’s iGaming Market
The acquisition of SKS365 marks a significant step in Lottomatica’s ongoing consolidation strategy, aligning with broader trends in the Italian online gaming industry. Italy’s highly competitive iGaming market has seen major operators vying for increased shares, with consolidation efforts driven in part by anticipated regulatory changes. The Italian government’s proposed gambling reforms, currently awaiting review by the European Commission, are expected to streamline regulations, offer new opportunities, and encourage further consolidation within the sector.
By securing a record 30% online gambling share, Lottomatica has positioned itself to adapt to these regulatory shifts. The upcoming reforms are set to create a more structured environment, allowing licensed operators to compete under new guidelines. With its recent moves, Lottomatica demonstrates its readiness to meet these changes head-on, continuing to capture market share in a rapidly evolving landscape.
Operational Adjustments Amid Expansion
Lottomatica has made strategic adjustments in response to market conditions, reporting an adjusted EBITDA margin of 34.1%. The company has focused on optimizing efficiencies, maintaining a stable financial position with net financial debt at approximately €1.9 billion—equivalent to 2.6 times its adjusted EBITDA over the past year. This financial foundation has enabled Lottomatica to maintain its growth momentum despite increased competition in the Italian market.
With these operational efficiencies in place, Lottomatica is well-positioned to sustain its lead. The company’s expansion strategy, supported by the SKS365 acquisition, aims to maximize market opportunities while balancing debt management with further investment in Italy’s gaming sector.
Lottomatica’s recent growth achievements and strategic positioning reflect a company prepared for continued success. As Italy’s gaming market braces for regulatory reforms, Lottomatica’s proactive approach has secured its place at the forefront, signaling strong performance in the years ahead.
