iGaming Giants Realigned: Lottomatica, Flutter, and the New Era in Europe

The global iGaming industry is currently witnessing a period of significant structural change, driven by strategic partnerships and shifting regulatory frameworks. Recent events highlight how companies are positioning themselves to capture growth in evolving markets while navigating the complexities of local laws. A standout development is the blossoming relationship between Lottomatica and CIRSA, which aims to create a new powerhouse in the European space. By merging, these two entities intend to solidify their dominance in Spain and Italy while using the combined strength to expand into Latin American territories.

Regulatory evolution is also a primary focus in Portugal, where industry leaders are calling for modernization. Pedro Miguel Garcia, Country Manager for Portugal at BacanaPlay, suggests that the next phase of growth depends on allowing products like Live Casino and innovative crash games. The Portuguese market currently features a distinct tax split: sports betting is taxed on turnover, whereas online casino operates on Gross Gaming Revenue (GGR). This discrepancy has drawn comparisons to emerging African markets, where turnover-based taxes are becoming a concern for operators trying to maintain profitability.

Numbers and facts

In Finland, the state-owned operator Veikkaus is making bold moves ahead of the country's transition to a licensing system scheduled for July 2027. Reporting on its H1 2026 results, the company revealed a massive base of 2.7 million registered customers. To prepare for the arrival of commercial competitors next July, Veikkaus has doubled its internal game studio capacity and established two separate subsidiaries—one for its remaining exclusive operations and one for the competitive licensed market. The digital casino vertical has shown strong growth, positioning the operator as a formidable incumbent.

Meanwhile, the financial landscape of the industry saw a major shift as Flutter Entertainment concluded its listing on the London Stock Exchange (LSE) at 8 am on 3 August 2026. The world’s largest online gambling group is now solely focused on its New York listing (NYSE). This move comes after a turbulent year where the group’s market value dropped from a peak of $50 billion to approximately $19 billion. Despite the volatility, Flutter’s US brand FanDuel continues to lead the market with a 39% share of the American sportsbook sector.

Background

The challenges of mergers and acquisitions in this sector are well-documented. Guglielmo Angelozzi, CEO of Lottomatica, noted that the industry is littered with failed M&A attempts that failed to deliver on their promises of competitive dominance.

“There are lots of failed M&A in the industry. In many cases you have M&A of assets that were not really in leadership, and the promise was to completely change the competitive position.” - Guglielmo Angelozzi, Chair and CEO of Lottomatica

In the Netherlands, the debate centers on advertising. The Dutch trade body VNLOK has been vocal about the risks of a complete advertising ban. They argue that such a ban would prevent consumers from distinguishing between legal, licensed platforms and dangerous offshore websites, potentially driving players toward the black market.

Why it matters for German players

For players in Germany, these international trends are highly relevant as they often mirror or influence local policies. The German Interstate Treaty on Gambling 2021 (GlüStV 2021) has already implemented some of the world's strictest player protection measures, including a €1,000 monthly deposit limit and a €1 per spin cap on virtual slots. The Dutch concerns regarding advertising bans are also being discussed in Germany, where the GGL (Joint Gambling Authority of the States) continues to fight unlicensed operators. For German users, the focus remains on the security provided by the LUGAS monitoring system and the OASIS central exclusion database, ensuring a safe gambling environment despite the restricted variety compared to non-GGL sites.

What it means for GGL-licensed casinos

Casinos operating under the German GGL license must find new ways to innovate within the strict boundaries of the law. As seen in Finland with Veikkaus, building a strong, trusted brand and investing in high-quality, compliant content is vital. German operators must leverage the safety aspects of their licenses to compete with the illegal market. The success of digital verticals in Finland shows that even under heavy regulation, significant growth is possible if the product selection resonates with the local audience and complies with responsible gaming standards.