Major supplier of gaming and lottery solutions International Game Technology and a consortium led by the company’s Italian business has been granted a provisional concession by Italian gaming regulator Agenzia delle Dogane e dei Monopoli for the operation of the country’s Lotto game. The concession will be officially awarded sometime in the second quarter of the year and will have a nine-year duration.
It was announced in March that Lottomatica, known to be member of the IGT Group, has joined a consortium of companies bidding for Italy’s Lotto tender. The said consortium also included Italian Gaming Holding, Arianna 2001 S.p.A., and Novomatic Italia S.p.A.
The four involved parties placed a €770-million bid for Italy’s Lotto concession. Upfront concession payments are to be paid in as many as three installments between the time the concession is awarded and April 2017. IGT said in a statement from today that the first installment of €350 million and the second one of €250 million are expected to be made by the end of the year. The remaining €170 million are to be paid in April 2017.
What is more, the consortium has formerly announced that it would invest the amount of €130 million to upgrade terminals, systems, and related technological infrastructure that supports the Lotto game. IGT revealed today that about 25% of the infrastructure upgrade capital is expected to occur in 2016 and the balance is to occur next year.
Consortium members will pay the upfront concession payments as well as the related capital investments on a pro rata basis. Under the terms of their agreement, Lottomatica will hold a 61.5% stake in Italy’s Lotto, Italian Gaming Holding will have a 32.5% interest, Arianna 2001 will own a 4% share, and Novomatic Italia will hold a 2% one. Thus, Lottomatica will have to appoint the board’s majority and to sign the necessary agreements related to the provision of technology services and products for the Italian lottery.
The Lotto tender was finally introduced last December, following a series of delays. Being one of the most popular games of chance in Italy, the Lotto concession attracted quite a lot of attention. In 2014, the country’s lottery generated the amount of €6.6 billion in full-year revenue.
