Investindustrial, a southern European private equity firm, and Palladio Finanziaria, an Italian investment firm, have bought out Snai, Italy’s biggest racetrack and sports-betting manager, in a €140m deal. The news is a welcome boost of confidence for the gambling sector which has fallen out of favour in recent months.

The two private equity partners acquired 50.68% of the Milan-listed gaming company's shares for €2.3646 each, through their investment vehicle Global Games, Investindustrial said this week. It was the largest buyout in Italy since 2009.