Betfair to Exit Italy Following Online Gambling Regulatory Changes
Italy.- 28 October 2026 | www.zonadeazar.com Flutter Entertainment has confirmed that Betfair will withdraw from Italy’s online betting and casino market, following regulatory changes that have undermined the commercial viability of its operations.
The decision covers Betfair Exchange, its peer-to-peer betting platform, alongside its traditional Sportsbook and online Casino products.
Although a definitive closure date has not yet been announced, Flutter confirmed that it will maintain its Italian presence through other brands, including Sisal, Snai and PokerStars.
Betfair Exchange No Longer Commercially Sustainable
The main reason for the withdrawal relates to recent changes in Italy’s online gambling regulatory framework.
Flutter explained that the new market conditions have made Betfair Exchange commercially unsustainable.
Unlike traditional sportsbooks, where bookmakers set the odds, betting exchanges allow customers to place bets against one another.
Flutter has decided to extend the withdrawal to Betfair’s Sportsbook and Casino services, even though these products operate under different commercial models.
Statements From Flutter Entertainment
A Flutter spokesperson confirmed that the company would soon discontinue Betfair’s Italian operations.
“Recent regulatory changes in Italy have made the Betfair Exchange product no longer commercially sustainable,” the spokesperson explained.
Flutter also confirmed that its Sportsbook and Casino services would be discontinued as a consequence of the decision.
The company emphasised that Betfair accounts for only a very small proportion of its Italian revenue and that the withdrawal would not affect its other brands or employees based in Italy.
Italy Introduces a New Licensing Framework
The decision follows a comprehensive reform of Italy’s gambling regulations, including the introduction of new licensing arrangements in November 2025.
One of the most significant changes requires operators to hold separate licences for individual brands, rather than operating several brands under a single authorisation.
For Flutter, this means maintaining individual licences for Betfair, Sisal, Snai and PokerStars, issued by Italy’s Customs and Monopolies Agency (ADM).
The revised framework also places betting exchange products within the regulatory provisions governing fixed-odds betting.
However, Flutter has not identified which specific regulatory change made Betfair Exchange commercially unviable.
Italian Affiliate Programme to Close
As part of its withdrawal, Betfair has notified commercial partners that its Italian affiliate programme will end on 31 October 2026.
The company has established the following timetable:
- 29 October: deadline for removing promotional content targeting Italian customers.
- 31 October: termination of Betfair’s Italian affiliate programme.
- November: payment of outstanding commissions earned during October.
- Other markets: affiliate agreements outside Italy will remain unchanged.
These dates apply specifically to the affiliate programme and do not establish the final closure date for the company’s gambling products.
Flutter to Retain Its Other Italian Brands
Despite Betfair’s withdrawal, Flutter Entertainment will remain a major participant in Italy’s regulated gambling market.
The group will continue operating through:
- Sisal: a major provider of betting, lottery and other gambling products.
- Snai: a sports betting and online gaming brand.
- PokerStars: an international online poker and casino platform.
Flutter has made significant investments in Italy during recent years, including the acquisition of Sisal in 2021 and Snaitech, the company behind Snai, in 2024.
The integration of Snaitech, whose acquisition was completed in April 2025, remains part of Flutter’s wider commercial strategy.
Regional Revenue Increases by 36%
Italy continues to play an important role within Flutter’s international operations.
During the first half of 2026, the company’s Southern Europe and Africa (SEA) region, which includes Italy, generated US$896 million in revenue, representing a 36% year-on-year increase.
The region ranked as Flutter’s third-largest during the period.
These results highlight the commercial importance of Southern European markets within the group.
Flutter maintains that Betfair’s withdrawal will have a limited impact on its Italian revenue.
Italy Expects €1 Billion in Gambling Tax Revenue
The market restructuring comes as Italy’s Ministry of Economy and Finance projects approximately €1 billion in gambling tax revenue during 2027–2028.
The forecasts form part of wider discussions surrounding the development of gambling taxation policies.
The Italian Government is also examining potential opportunities for private-sector involvement in certain market segments.
These include a possible tender relating to the distribution of lottery scratchcards.
Sisal Could Pursue New Lottery Opportunities
One potential commercial opportunity for Flutter involves Italy’s instant lottery market.
Prime Minister Giorgia Meloni’s government is considering whether to appoint a private-sector partner for the distribution of scratchcard products.
Sisal could submit a bid if the tender process moves forward.
Potential competitors include the LottoItalia consortium, comprising Allwyn, Arianna 2001, Novomatic Italia and IGT.
However, Sisal’s participation remains a possibility rather than a confirmed bid or awarded contract.
Impact on Italy’s Gambling Market
Flutter’s decision represents a significant development for Italy’s sports betting exchange segment.
Betfair Exchange helped popularise peer-to-peer betting, allowing customers to trade positions for and against sporting outcomes.
Its withdrawal could reduce the options available to customers who use this model within the regulated Italian market.
The development also illustrates how changes to licensing and supervisory requirements can influence the commercial sustainability of specific gambling products.
Next Steps
Flutter must complete the process of withdrawing Betfair Exchange, Sportsbook and Casino from the Italian market.
The company has not yet announced the exact dates when its betting and casino products will cease operating.
The first confirmed milestone will be the closure of the Italian affiliate programme on 31 October 2026.
Meanwhile, Flutter will continue developing its Italian operations through Sisal, Snai and PokerStars.
Betfair’s withdrawal highlights the commercial consequences of Italy’s changing online gambling regulations, although it does not represent a complete exit by Flutter Entertainment from the country.
Edited by: @fonta
