Italian group Lottomatica announced on Wednesday an agreement to acquire Spanish casino and gaming operator CIRSA in an all-share deal valued at €2.8 billion. The transaction would create the world’s second-largest listed gaming and sports betting group, behind Flutter, owner of FanDuel.
Blackstone, the American fund currently the majority shareholder of CIRSA, will become the top investor in the combined entity with a 24% stake. The pro forma adjusted gross operating profit of the combined structure is projected at approximately €2 billion.
An Italian-Spanish tie-up
Under the terms of the agreement, Lottomatica will pay 0.668 new shares for every CIRSA share tendered. This ratio values the Spanish company’s shares at €16.55 each, representing a premium of around 21% over Tuesday’s closing price, according to Reuters calculations.
The combined structure will be headquartered in Rome, with a secondary office in Barcelona. It will retain the Lottomatica name and will be led by Guglielmo Angelozzi, current Chairman and CEO of the Italian group. The merger is expected to generate €115 million in pre-tax cash synergies within three years of completion, during which the combined group plans to return up to €4 billion to shareholders through dividends and share buybacks.
Blackstone, already an established player in Spanish hospitality
While CIRSA operates primarily standalone casinos and gaming halls rather than integrated hotel-casino resorts in the American mould, the deal fits into a broader Blackstone strategy on the Iberian Peninsula. The fund has owned Hotel Investment Partners (HIP) since 2017, which has become the country’s largest hotel owner, with assets operated under brands including Marriott, Ritz-Carlton, Barceló and Meliá.
Blackstone has also previously invested in the casino sector, notably through its bid for Australian operator Crown Resorts in 2021. More broadly, the fund has stepped up its exposure to hospitality in recent years, including through an $8 billion real estate debt fund.
A mixed market reaction
The announcement caught some investors off guard: Lottomatica shares fell 9.6% intraday, as the group had until now focused its strategy on online gaming in Italy. Conversely, CIRSA shares jumped 17%. The Spanish company generates 53% of its gross profit from physical casinos and gaming halls and is seeking to build out its online presence.
Asked by analysts, Guglielmo Angelozzi said he believed the risks associated with the transaction were limited, given that CIRSA is the leader in the Spanish market and requires no turnaround. He described the deal as offering stable, predictable growth for the combined group.
In a note, JPMorgan analysts called the transaction strategically sound, pointing out that Lottomatica is using its own shares to acquire a more modestly valued asset while retaining 67.5% of the combined group’s capital. They noted that, having demonstrated its execution capabilities in Italy — where the group is the number one player in an attractive, growing market — Spain represents a logical next step in its development.
Timeline and next steps
The combined structure will be dual-listed on Euronext Milan and the Spanish stock exchange. Ahead of closing, CIRSA will pay an extraordinary dividend of €262 million to its shareholders. Completion is expected in the second quarter of 2027, subject to shareholder approval at both companies.
Lottomatica is advised by Evercore, PJT Partners, Deutsche Bank and Mediobanca. CIRSA is advised by Lazard.
At a glance by The Hospitality Tribune
Lottomatica to acquire CIRSA in €2.8bn all-share deal
Deal creates world’s second-largest listed gaming and sports betting group, after Flutter
Blackstone, CIRSA’s main shareholder, becomes top investor with a 24% stake
Blackstone already Spain’s largest hotel owner through Hotel Investment Partners (HIP)
Combined group to be led by Lottomatica CEO Guglielmo Angelozzi, HQ in Rome
Closing expected Q2 2027, pending shareholder approval on both sides
