Italy-based lottery and sports betting operator Sisal Group is set to split its payments subsidiary – Mooney Group – from its core B2C gambling business in an “organizational restructure.”
Sisal, which operates Italy’s SuperEnalotto lottery among other businesses, currently owns a 70% stake in Mooney Group.
As part of the recently initiated demerger, these shares will be transferred to a newly established holding company – SG2 S.p.A. – which will be directly owned by UK private equity firm CVC Capital Partners. CVC also owns Sisal, among a host of other gambling-related businesses around Europe.
The private equity and investment advisory company purchased the Italian gambling operator in the spring of 2016 in a €1 billion deal.
The remaining B2C lottery, betting, and gaming operations, which are all currently controlled by Sisal S.p.A., will then be transferred to Sisal Group. Both Sisal S.p.A. and Mooney Group are owned by Sisal Group.
The Italian gambling operator said that the demerger is aimed at “rationalizing and reorganizing the control chain of the group.” Sisal further elaborated that the move forms part of a wider strategy of corporate restructuring undertaken by the company and that the ultimate goal of this larger effort is to “better define the functions and primary objectives of the group.”
Demerger to Be Completed in Fall
Sisal said that it expects the demerger of its payment services operation to be completed in November 2021, subject to regulatory approvals from competent authorities in Italy.
The gambling operator was founded in 1946 and has since then established itself as one of Italy’s largest providers of B2C gambling and sports betting services. It currently manages more than 45,000 points of sale located around the country and runs a successful online business in one of Europe’s largest regulated markets.
Sisal is also looking to dethrone Camelot as UK’s National Lottery operator. The Italian company entered the fourth lottery license tender this past April after teaming up with telecommunications giant BT to table a joint bid. It said that if it wins the UK lottery license, it would implement new technologies to widen the appeal of lottery games to local players.
The UK Gambling Commission launched the license tender in August 2020 and is expected to announce the winning bidder sometime next month.
Camelot has been running the UK National Lottery since 1994. Its license is set to expire in 2023. Pan-European lottery powerhouse Sazka Group and major Indian lottery operator Sugal & Damani have also thrown their hats in the ring and are competing for the fourth license tender to potentially enter UK’s lucrative market.
Source: Sisal to demerge payments subsidiary from gambling business, iGamingBusiness, August 3, 2021