Lottomatica and Cirsa Form Gaming Behemoth
In a significant consolidation move, Lottomatica and Cirsa have agreed to a merger that will establish the second-largest listed global gaming and sports betting operator. Lottomatica CEO Guglielmo Angelozzi, who will lead the combined entity, emphasized the deal is a “low-risk proposition” during an investor call. The new powerhouse is projected to have a pro forma adjusted EBITDA of approximately €2 billion.
Angelozzi highlighted the consistent growth of both companies, with Lottomatica and Cirsa demonstrating revenue CAGRs of 13% and 11% respectively between H1 2024 and H1 2026. He assured analysts that the merger would not involve a difficult turnaround, as Cirsa is already a well-managed market leader. The combined company will be listed on stock exchanges in both Italy and Spain, with these two markets expected to generate 80% of its EBITDA.
“You get the same stable and predictable growth and you get the capital returns. You get no additional risk, and you get the benefits of the new markets and the online opportunities on top of the synergies, which are also pretty significant.” - Guglielmo Angelozzi, CEO of Lottomatica
The largest vertical for the new group will be online betting and gaming, accounting for 48% of the combined pro forma adjusted EBITDA in H1. Distributed gaming will follow at 27%, with casinos at 25%. Angelozzi sees a significant opportunity in Spain's online market, which he described as more fragmented than Italy's.
Merkur Expands in France with SFC Acquisition
The M&A activity continues in Europe as German gaming giant Merkur AG, through its subsidiary, is set to acquire a controlling interest in Société Française de Casinos (SFC). The deal involves purchasing 95% of Casigrangi, the parent company of the Le Stelsia casino group, which holds an 81.2% stake in SFC.
Merkur has agreed to a price of €6.19 per SFC share. Following the acquisition, French regulations will require Merkur to launch a simplified mandatory tender offer for the remaining SFC shares at the same price. The company intends to pursue a squeeze-out and ultimately delist SFC from the Euronext Paris exchange, with the transaction expected to close in the first quarter of 2027.
Key European M&A Deals at a Glance
| Feature | Lottomatica & Cirsa | Merkur & SFC |
|---|---|---|
| Acquirer | Lottomatica | Merkur AG |
| Target | Cirsa (merger) | Société Française de Casinos (SFC) |
| Market Impact | Creates 2nd largest global listed operator | Major expansion into the French casino market |
| Primary Markets | Italy and Spain | France |
| Next Steps | Dual listing on Italian and Spanish exchanges | Mandatory tender offer and delisting of SFC |
Regulatory Shake-Ups from Brazil to Botswana
Legislators across the globe are introducing significant changes to their gambling frameworks. In Brazil, a Senate Committee has approved a bill proposing severe restrictions on gambling advertising and sponsorships, while Botswana's parliament has passed a bill to lower the legal gambling age.
Brazil Proposes Sweeping Ad and Sponsorship Ban
The Science and Technology Committee in Brazil approved Bill 2.470/2026, which aims to protect consumers by heavily restricting betting promotions. The proposal would prohibit direct and indirect advertising on radio, television, social networks, and other digital platforms. It also bans promotional tools like bonuses, free bets, and cashback offers.
Sponsorships of sports clubs, leagues, cultural events, and influencers by betting companies would also be forbidden, with a 24-month period for existing contracts to be terminated. Furthermore, the bill introduces the new crime of promoting unauthorized betting operators, with a penalty of one to five years in prison.
Botswana Lowers Gambling Age to 18
Botswana’s National Assembly has passed the Gambling (Amendment) Bill, 2026, which notably lowers the legal gambling age from 21 to 18. The move is intended to align the threshold with the country's general age of majority and help combat the growing illegal online market, which is estimated to divert P850 million ($63.2 million) from the economy annually.
The bill also strengthens the country's anti-money laundering (AML) framework to align with Financial Action Task Force (FATF) standards. Supporters of the age change argue that it is a practical measure, as an unenforceable higher age limit could push young adults toward unlicensed sites.
Operator Insights and Industry Partnerships
Beyond M&A and regulation, key industry players are navigating new challenges and forging strategic alliances. Holland Casino's CEO spoke on market pressures, while Spotlight Sports Group and 1xCare announced new initiatives.
Holland Casino Navigates Tax Hikes and Illegal Ads
Petra de Ruiter, CEO of Holland Casino, revealed that the state-owned operator is grappling with a tax rate that has risen to 37.8% of GGR, amounting to around 52% after labor taxes. Despite this, the company has restructured to maximize efficiency without impacting its customer offering. De Ruiter also highlighted the industry's collective legal battle against Meta, citing 70,000 monthly ads for illegal operators on its platforms.
Spotlight Sports Group Enters Gaming Sector
Spotlight Sports Group is expanding into the gaming space for the first time through a partnership with supplier Engage Games. The collaboration will give Spotlight's network of sportsbook operators access to bespoke free-to-play and pay-to-play games, including fantasy and predictor titles. This move is part of Spotlight's 2026 Racing Innovation strategy to enhance customer engagement.
1xCare Champions Player Protection
Sissel Weitzhändler, a new member of 1xCare’s Advisory Board, emphasized the organization's commitment to sustainable player protection. She stated that academic independence in research is crucial, even if findings are critical of the industry. 1xCare's mission is built on four pillars: research, education, technology, and well-being support.
