Lottomatica & Cirsa Merge to Form a Global Gaming Operator

Lottomatica and Cirsa Announce Blockbuster Merger

In a landmark move, Lottomatica and Cirsa have agreed to an all-share merger, a deal poised to form the second-largest listed global gaming operator in the world. The transaction, expected to close in the second quarter of 2027, will create a combined group with a pro forma adjusted EBITDA of approximately €2 billion. This new entity will hold dominant leadership positions in the key European markets of Italy and Spain.

Under the terms of the deal, Lottomatica will absorb Cirsa, with current Lottomatica shareholders expected to own about 67.5% of the new company and Cirsa’s shareholders the remaining 32.5%. Cirsa's largest shareholder, Blackstone, will become the largest shareholder of the combined company, retaining around 24% of the share capital. The merger is projected to deliver around €115 million in annual pre-tax cash synergies.

The leadership structure will see Lottomatica's Chairman and CEO, Guglielmo Angelozzi, continue in the same capacity, with Deputy CEO and CFO Laurence Van Lancker also retaining her role. Cirsa's CEO Antonio Hostench and CFO Antonio Grau will continue to lead their teams. The combined group will trail only Flutter Entertainment in size and plans a dual listing on the Milan and Spanish stock exchanges.

Regulatory Battles Heat Up Across Europe

While industry giants consolidate, regulatory bodies are increasing their scrutiny of the market. The Netherlands and Estonia have become key battlegrounds for policy and enforcement, highlighting the complex legal landscape operators must navigate.

Netherlands: Nederlandse Loterij Targets Illegal Operators

The state-backed Nederlandse Loterij has issued a cease-and-desist notice to the operators of the unauthorized gambling site Skyhills, ordering them to stop serving Dutch players. This action follows a successful court ruling against another illegal operator, Lalabet, which set a legal precedent. Arjan Blok, CEO of Nederlandse Loterij, noted the urgency of the action, stating, “Skyhills uses devious advertising, including on TikTok, explicitly targeting Dutch players, especially young people.”

This crackdown is part of a broader effort that also includes legal action against the operator Qbet. It coincides with debates in The Hague over gambling regulation reforms. The lottery has voiced concerns over a proposed blanket advertising ban on licensed providers, arguing it could push players toward the illegal market, which it estimates already controls half of the Dutch online gambling sector. This concern is echoed by the trade body VNLOK, which recently initiated legal action against Meta for failing to curb illegal gambling ads on its platforms.

Estonia Defends Controversial iGaming Tax Cut

In Estonia, MP Tanel Tein has defended a controversial reduction in the online gambling tax rate amid calls for an early review. The government cut the tax from six percent in 2025 to four percent by 2029 to attract international operators. However, a 9.7% decline in overall gaming tax revenue in the first seven months of 2026 prompted criticism.

Tein argues that it's too soon to judge the policy's effectiveness, pointing out that contributions from the state lottery and land-based gambling have also fallen. He highlighted that six new companies have secured operating licenses in Estonia during 2026, suggesting the strategy is beginning to work. “Let’s give the agreed strategy time,” Tein urged, calling for a proper impact assessment before any reversal.

Innovation in iGaming: New Formats and Technologies

The iGaming sector continues to evolve with fresh concepts aimed at engaging new demographics and fostering technical collaboration. From social media-inspired games to expert-led tech summits, the industry is actively shaping its future.

Swipe Games: Tapping into the TikTok Generation

A new casino category is emerging to capture the attention of younger players. Swipe Games, founded by entrepreneur George Yashin, is designed to mimic the fast-paced, content-driven experience of social media platforms like TikTok. Instead of a traditional lobby, players enter an endless feed of short videos and bet on one of three possible outcomes, with results revealed in seconds.

"We are as quick as crash games, but the pattern and the feel are more like betting. We are combining two different worlds – betting and quick games." - George Yashin, Founder of Swipe Games

The company, which uses generative AI to produce its vast library of video content, has already signed deals with major partners like BGaming, SoftSwiss, and 1xBet. Early data suggests the format is driving higher stakes and better player retention compared to traditional crash games.

Behind the Curtain of Prediction Markets

The growing world of prediction markets is being powered by an institutional layer that is largely invisible to consumers. Bernard Marantelli, founder of White Swan Data, describes these platforms as a "sportsbook that’s just not allowed to have an in-house risk team." His firm is a major market maker on several exchanges, providing the liquidity and pricing for complex parlay markets.

Marantelli cautions that this structure can pose risks. “People will lose money faster on exchanges for lots of reasons,” he says, noting that users are often competing against highly sophisticated, professional firms. While the US market shows strong growth, the long-term sustainability could be tested if new player recruitment slows.

Industry Leaders to Convene at Tech Race Summit

To address the need for more technical dialogue in the iGaming industry, SOFTSWISS is hosting the Tech Race Summit 2026 in Warsaw on September 10th. Sergey Kastukevich, SOFTSWISS CTO, explained that the event aims to fill a void by creating a dedicated space for engineers and technology leaders to share knowledge. The summit is positioned as a precursor to discussions that will continue at ICE in Barcelona, creating a continuous conversation for the industry's top technical minds.

September Slot Releases: A Packed Schedule

Operators and players can look forward to a busy month of new game launches from leading providers. The September schedule is filled with diverse themes and innovative mechanics, from highly anticipated sequels to brand new concepts.