IGT Group member Lottomatica announced that it has entered a consortium agreement in relation to its interest to bid for Italy’s Lotto tender, opened late last year. Members of the said consortium include Arianna 2001 S.p.A., Novomatic Italia S.p.A., and Italian Gaming Holding.
The consortium members pointed out that they all have the experience and financial resources needed to secure the continued success of Italy’s Lotto.
Under the terms of the agreement between the four parties, Lottomatica will take the role of a principal operating partner and will be expected to meet the requirements necessary for the Lotto license. The consortium’s bid was submitted on Wednesday, March 16, 2016.
If the group of companies is granted the license, a joint business will be established, in which Lottomatica will hold a 61.5% equity stake. Italian Gaming Holding will have a 32.5% share, Arianna 2001 will hold a 4% one, and Novomatic Italia will have a 2% one. In addition, it will be Lottomatica’s responsibility to appoint the majority of board and to sign an agreement with the joint business for the provision of lottery technology services and related products.
The involved parties have also agreed that if they cannot settle the conditions of specified matters or if cash flow generated during the first year of the joint venture’s operation does not meet original expectations, Italian Gaming Holding may put its entire interest in the business to Lottomatica. What is more, Lottomatica will be able to exercise a call option to acquire Italian Gaming Holding’s interest in the business in certain cases.
The €700-million Lotto tender was launched in December 2015 after a number of delays. It attracted quite a lot of attention as the Lotto game has long been one of the most popular games of chance in Italy. The business generated revenue of €6.6 billion in 2014.
Interested parties had up until Wednesday, March 16 to submit their bids. Applying entities needed to be based in the European Economic Area and to have a share capital estimated at no less than €20 million. The winning bidder will be granted a 9-year license.
