Intralot to acquire Bally’s digital gaming unit in €2.7bn deal to build global lottery leader

Intralot S.A. (ATSE: INLOT) has announced a definitive agreement to acquire Bally’s Corporation’s (NYSE: BALY) International Interactive business in a €2.7 billion cash-and-shares transaction that is expected to close in the fourth quarter of 2025. The acquisition marks a transformational move by the Greek lottery and gaming technology firm to become a global player in the high-growth digital iGaming and lottery sectors. Upon completion, Bally’s will become the majority shareholder of Intralot, while the combined entity is expected to remain listed on the Athens Stock Exchange.

The deal includes €1.53 billion in cash and €1.136 billion worth of newly issued Intralot shares. To finance the cash consideration, Intralot has secured debt commitments of up to €1.6 billion from a syndicate of banks including Citizens Bank, Deutsche Bank, Goldman Sachs, and Jefferies. Additionally, Intralot plans to launch an equity offering of up to €400 million, subject to corporate and regulatory approvals. Bally’s, on its part, will use the proceeds to repay secured debt and has lined up an additional $100 million delayed draw facility for strategic initiatives such as the Bally’s Chicago project.

This strategic combination aims to integrate Bally’s technology-focused online gaming division with Intralot’s resilient B2B lottery platform, creating a vertically integrated business with operations in over 40 regulated jurisdictions worldwide.

Why is Intralot acquiring Bally’s international interactive business now and how could it reshape its technology stack and market positioning?

The acquisition comes at a time when global gaming and lottery markets are experiencing robust digital growth, with a projected total addressable market of $187 billion by 2029. Intralot is capitalizing on this momentum by merging its longstanding expertise in regulated lottery operations with Bally’s interactive capabilities in iGaming, particularly in the United Kingdom.

At the core of the deal is a convergence of complementary technology platforms. Intralot’s proprietary LotosX and PlayerX lottery systems will be integrated with Bally’s Vitruvian data analytics platform, creating a unified stack capable of real-time customer engagement, loyalty program enhancements, and precision marketing. This integration is expected to significantly improve Intralot’s competitive positioning in contract renewals, new tender submissions, and digital transformation projects for state lotteries.

The acquisition will also allow Intralot to accelerate expansion into new verticals, such as the charity lottery segment in both the UK and the United States. Bally’s interactive business brings a strong B2C presence, especially in online casino gaming, which can now be cross-leveraged with Intralot’s B2B relationships. This dual-channel strategy positions the combined entity to better navigate regulatory landscapes while diversifying revenue streams across geographies and verticals.

How are financial markets and institutional investors responding to the merger announcement?

Initial market response has been positive, with Bally’s Corporation’s stock rallying nearly 20 percent following the announcement. This uptick reflects investor confidence in Bally’s monetization of its interactive assets and the refocus of its capital toward domestic casino development and debt reduction.

Analysts have described the transaction as value-accretive for Intralot, which will benefit from revenue synergies, margin expansion, and enhanced scale. The combined group is expected to generate €1.1 billion in revenues and achieve an EBITDA margin of 38 percent before synergies, with operating free cash flow conversion expected to exceed 90 percent. These strong fundamentals, supported by a recurring lottery revenue base and high-margin digital operations, are seen as favorable by institutional investors.

However, some caution has been raised about leverage metrics, especially considering the substantial financing package required for the deal. Post-transaction, Intralot is targeting a steady-state net leverage ratio of approximately 2.5x, alongside a dividend payout ratio of 35 percent of net income. Analysts note that execution will be key, particularly in managing integration risks and delivering on cost synergy targets.

What are the leadership changes, governance expectations, and management structure following the deal completion?

The post-deal governance framework has been designed to reflect the global ambitions of the combined business. Robeson Reeves, currently CEO of Bally’s, is expected to assume the role of CEO of the enlarged Intralot. Nikolaos Nikolakopoulos, Intralot’s current Group CEO, will serve as President and CEO of the Lotteries division, while Chrysostomos Sfatos will take on the role of Chief Financial Officer.

The board of directors of Intralot will expand to 11 members, the majority of whom will be independent. Notable figures expected to serve on the post-transaction board include Sokratis Kokkalis (founder and chairman of Intralot), Soohyung Kim (chairman of Bally’s and vice chairman of Intralot), Robeson Reeves, and Nikolaos Nikolakopoulos. This governance structure is intended to ensure continuity, while also strengthening oversight as the business scales internationally.

The deal also triggered a mandatory tender offer after Bally’s increased its stake in Intralot from 26.86 percent to 33.34 percent. This solidifies Bally’s influence over Intralot’s strategic direction and reflects a broader trend of shareholder consolidation in the gaming technology sector.

What are the deal’s projected risks, regulatory hurdles, and timeline for closure?

While the strategic rationale for the transaction is strong, completion is contingent on multiple regulatory and procedural milestones. The deal must receive antitrust clearance and gaming authority approvals in jurisdictions where both companies operate. Additionally, shareholder approval from Intralot’s investors is required, especially in relation to the equity issuance.

The transaction is expected to close in the fourth quarter of 2025, assuming all conditions precedent are met. Key risks include potential delays in regulatory approvals, unforeseen integration complexities, and refinancing execution challenges amid fluctuating interest rate environments.

That said, both companies have reiterated their commitment to responsible gaming, ESG standards, and transparent corporate governance. With a combined presence across 40-plus jurisdictions and long-standing regulatory relationships, institutional sentiment remains cautiously optimistic that the deal will close on schedule.

What strategic advantages will Intralot gain from combining lottery resilience with digital gaming growth?

One of the most compelling strategic outcomes of the deal is the synthesis of Intralot’s contractual lottery revenue model with Bally’s fast-growing digital gaming footprint. As of 2025, Intralot has over €1.4 billion in contracted B2B lottery revenues extending through 2029, with an 89 percent historical renewal rate and average contract tenure of 16 years. This offers long-term revenue visibility and cash flow stability.

Bally’s International Interactive division, which includes assets acquired via the Gamesys transaction, operates some of the UK’s top-performing online casino brands. These brands deliver peer-leading margins supported by robust user acquisition, retention systems, and a scalable cloud-native platform.

The merger creates an end-to-end technology and services company that can address both enterprise lottery clients and retail-facing gaming consumers. This vertical integration is expected to deliver short-term cost synergies in procurement, systems integration, and operational overhead—while also unlocking long-term revenue synergies through bundled offerings and loyalty-driven engagement models.

In essence, the deal reflects a maturing trend in global gaming where convergence between regulated lottery systems and consumer-facing iGaming is becoming central to growth strategies.

How could Intralot’s acquisition of Bally’s interactive business reshape gaming industry leadership going forward?

The €2.7 billion acquisition of Bally’s International Interactive business positions Intralot to become a heavyweight in the global lottery and digital gaming ecosystem. The merger capitalizes on complementary strengths—Intralot’s B2B lottery leadership and Bally’s consumer-facing digital expertise—to create a scalable platform with high-margin potential and strong regulatory credentials.

Analysts believe that successful integration will hinge on technology stack harmonization, regulatory approvals, and disciplined capital deployment. If executed effectively, the combined entity could redefine the contours of the global gaming technology industry, making it a prime contender in upcoming digital lottery tenders and iGaming expansions across Europe and North America.

As capital continues to shift toward technology-led gaming models, this transaction represents a high-stakes bet on the convergence of data, regulation, and user experience.