In a significant development for the gaming industry, Morocco's largest casino operator is set to join forces with a global gambling company, following Italy’s Lottomatica's decision to acquire its Spanish rival, CIRSA. This merger is poised to create a powerhouse in the gaming sector, generating around $2.3 billion in annual adjusted earnings, making it the second-largest publicly traded gaming and sports-betting operator in the world, trailing only behind Flutter Entertainment, the parent company of FanDuel.
The strategic merger primarily aims to integrate Lottomatica’s stronghold in the Italian market with CIRSA’s prominent position in Spain. However, the ramifications of this union extend to Africa, where CIRSA has established a significant presence in Morocco—an emerging tourism hotspot on the continent. CIRSA’s portfolio in Morocco includes renowned casinos linked to major hotels and tourist attractions in cities like Agadir, Tangier, and Marrakech, positioning it as a key player in the nation’s burgeoning tourism economy.
Importantly, the merger will not involve the sale of CIRSA's casinos to another buyer; rather, CIRSA will be fully incorporated into Lottomatica, placing its Moroccan operations under the umbrella of a much larger, Europe-based corporate group. This change signifies a substantial shift in the management and operational oversight of the casinos located in Morocco.
Under the terms of the transaction, investors in CIRSA will receive 0.668 newly issued shares of Lottomatica for each share they hold in CIRSA. Following the merger, existing shareholders of Lottomatica are projected to control approximately 67.5% of the new entity, while CIRSA shareholders will hold the remaining 32.5%. Notably, Blackstone, which acquired CIRSA in 2018, is anticipated to become the largest individual shareholder of the combined company, with around a 24% interest. In addition, Blackstone will have the authority to nominate two directors to the board, reflecting its significant influence in the newly formed entity.
Before the merger is finalized, CIRSA’s shareholders are expected to receive a special dividend of $305 million, equivalent to €1.56 per share. Following the merger, the combined entity also plans to distribute an additional €744 million to investors through various means, including a tender offer or special dividend. The expanded business will retain the Lottomatica name, with its headquarters in Rome, while CIRSA will maintain a secondary office in Barcelona. Share trading for Lottomatica is set to continue in Italy and Spain.
The merger is targeted for completion in the second quarter of 2027, pending shareholder approvals and regulatory clearances. The collaboration is projected to yield around €2 billion in pro forma adjusted earnings before interest, taxes, depreciation, and amortization. Furthermore, the companies are anticipating annual pre-tax savings of approximately €115 million within three years, highlighting the merger's potential for operational efficiency.
CIRSA currently operates in 11 different markets, with approximately 50% of its adjusted earnings derived from Spain and 43% from other markets, including Morocco, Portugal, and several Latin American countries. Notably, casinos contribute around 53% of CIRSA’s adjusted earnings, distinguishing its Moroccan operations from Lottomatica’s existing focus, which is primarily centered on online betting, sports wagering, lotteries, and gaming machines in Italy.
Morocco’s casinos are intrinsically linked to the country's expanding luxury tourism sector. The nation welcomed a record 19.8 million visitors in 2025 and aims to increase this figure to 26 million annually by 2030. The Moroccan government is actively supporting this growth by planning to add approximately 60,000 hotel beds and investing over $20 billion in transport and tourism-related infrastructure, which includes preparations for co-hosting the 2030 FIFA World Cup. This burgeoning tourist influx enhances the commercial viability of entertainment ventures associated with internationally recognized hotels and attractions.
The integration into the larger Lottomatica group is expected to provide CIRSA's Moroccan casinos with enhanced technology, capital, and customer management systems, potentially leading to further investment considerations. However, as of now, neither company has announced plans for new casinos or online betting services in Africa, making it premature to characterize the merger as a new investment initiative in the region.
The immediate significance of this merger for Africa lies in the corporate control dynamics it introduces. Following the completion of the transaction, some of Morocco’s most prominent gaming establishments will operate under a larger European betting conglomerate, with Blackstone as the leading shareholder, indicating a pivotal shift in the gaming landscape.
As reported by africa.businessinsider.com.
