Flutter enters contest to run national lottery via Italian takeover

Deal struck to buy Italian gambling company Sisal, one of four firms bidding for licence to run UK lottery

Flutter, the gambling company that owns Paddy Power and SkyBet, has agreed to buy the Italian operator Sisal in a 1.6bn deal that could have a significant bearing on the competition to run the UK's national lottery.

In a statement to the stock market, Flutter said it had struck a deal with the private equity group CVC Partners to buy Sisal, a major Italian gambling and betting firm which also operates lotteries in Italy, Turkey and Morocco.