The merger between Lottomatica and CIRSA will create the second-largest global operator
The stock exchange merger between Lottomatica and CIRSA will form an operator with a combined adjusted EBITDA nearing €2 billion, expanding its presence in the markets of Spain, Italy, and LATAM.
Key Takeaways
- The merger between Lottomatica and CIRSA will generate the second-largest global operator by adjusted EBITDA.
- The deal gives Lottomatica 67.5% of the capital and Blackstone 24% as the main shareholder.
- The LATAM risk exposure is limited in the merged entity, prioritizing the markets of Italy and Spain.
- The operation is set to close in the second quarter of 2027 and will be listed in Milan and Spain.
- Both companies expect to realize synergies in both retail and digital channels following the integration.
The stock exchange merger between Lottomatica and CIRSA will bring strategic advantages for both operators, resulting in what, according to their own estimates, will be the second-largest global operator of gambling and sports betting listed on the stock exchange, with a combined adjusted EBITDA of approximately €2 billion.
Agreement Structure and Market Valuation
In early September, Lottomatica and CIRSA reached a merger agreement in which the Italian multinational will acquire the omnichannel operator focused on Spain and Latin America. The initial announcement had opposing effects on the stock prices: Lottomatica fell by 10% to €22.38, its lowest since March, while CIRSA surged by 15.1%, reaching €15.70 per share, its peak since September 2025.
Upon completion of the operation, Lottomatica will be the corporate brand of the merged group, which will be listed both on the Milan Stock Exchange and in the Spanish stock markets. According to the agreement, Blackstone, the largest shareholder of CIRSA, will come to control around 24% of the capital, while Lottomatica shareholders will retain 67.5%, and the remainder will be in the hands of the current holders of CIRSA.
Strategic Benefits for Lottomatica and CIRSA
According to industry consultant Eduardo Morales-Hermo, both entities will achieve material synergies by joining forces, consolidating positions in strong markets such as Italy and Spain and reducing relative exposure to Latin America. For Lottomatica, the merger provides access to CIRSA's share and knowledge in Spain and LATAM, with the possibility of adding CIRSA's brand portfolio in Italy to its multichannel platform. Morales-Hermo noted:
"In the retail channel, the merger combines distinct markets, allowing Lottomatica to access Latin America and Central America, annexing the Spanish footprint and adding CIRSA's Italian business to its multiple local brands." — Eduardo Morales-Hermo, Ficom Leisure
Approximately 56.7% of CIRSA's group EBITDA comes from Spain and Italy, so the operation is fundamentally based on these solid and well-regulated jurisdictions. Morales-Hermo clarifies that the LATAM component, while present, has relatively less weight and consequently, the overall risk remains under control. The expert added:
"LATAM still represents a mystery for many operators, particularly due to political uncertainty and legal insecurity, but the merger is supported by serious and stable markets such as Italy and Spain, so the exposure to Latin American risk is limited."
Omnichannel and Post-Merger Opportunities
Lottomatica brings proven experience in online and retail operations within the Italian market, which can strengthen CIRSA in LATAM, where the Spanish company has a relevant presence and specific know-how. CIRSA, which controls brands such as Apuesta Total, CasinoPortugal, Amazing Bet, and Sportium, has historically favored land-based gaming, especially in Spain, which is considered key to enhancing a combined omnichannel strategy.
The operation will allow both parties to leverage cross-knowledge in both retail and digital. Morales-Hermo values the timing of the merger as appropriate and anticipates positive effects for service provision and optimization of operations in both physical and online channels.
Context: Recent Trajectory of Each Group
CIRSA went public in 2025, setting the initial price of its IPO at €15 per share. Its international growth has been accompanied by acquisitions and omnichannel expansion. Lottomatica, on the other hand, has maintained an active mergers and acquisitions policy in recent years. In November 2023, it acquired SKS365 for over €600 million and added Dea Bendata, the bingo hall Galletto Fortunato, and the independent developer Bakoo to its portfolio in 2024.
Together, the merged entity will seek to consolidate its presence in markets considered mature and stable, thereby reinforcing resilience against the volatility posed by LATAM, according to Morales-Hermo's assessment.
Outlook After the Closing of the Merger Between Lottomatica and CIRSA
The closure of the operation is expected in the second quarter of 2027. After completion, the new Lottomatica aims to occupy a prominent position in both Italy and Spain, where each partner brings competitive advantages, financial solidity, and an omnichannel strategy aligned with current trends in the gaming industry. Jefferies analysts point out that some Lottomatica shareholders remain cautious about CIRSA's land-based and Latin American exposure, but the sector consensus gravitates around the value of synergies in major European markets.
The new group will seek to strengthen its competitive position in key markets and leverage the integrated expertise of both companies for future growth.
Frequently Asked Questions
When will the merger between Lottomatica and CIRSA be finalized?
The merger is expected to be completed in the second quarter of 2027. The resulting entity will maintain listings on both the Milan Stock Exchange and in Spanish exchanges.
What stake will Blackstone hold in the new company?
Blackstone, the largest shareholder of CIRSA prior to the merger, will own approximately 24% of the capital of the merged entity once the deal is completed.
What benefits does the merger bring to Lottomatica and CIRSA?
Both companies will gain significant synergies, consolidating their positions in stable markets like Spain and Italy and optimizing integration between retail and digital channels.
What risks does the Latin American market pose after the merger?
The exposure to Latin American risk for the new entity is limited, as nearly 56.7% of EBITDA comes from Spain and Italy, markets considered solid and regulated.
What brands does CIRSA bring to the merged company?
CIRSA adds recognized brands such as Apuesta Total, CasinoPortugal, Amazing Bet, and Sportium, increasing the diversification of the global portfolio under the Lottomatica brand.
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About the author
Gonzalo Marín
Industry Deals Correspondent
Gonzalo Marín covers the corporate deal flow of gambling — operator strategy, M&A, regulated-market entries, and product launches. The reports open with the transaction, cite companies, valuations, and jurisdictions exactly as released, and keep the announcement apart from its actual effect. When a Latin American operator raises capital or a European brand lands in the region, Gonzalo Marín reports who signs, for how much, and on what terms.
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