SBC News Voice of the Sports Betting Industry
Updating the market, New York-listed International Game Technology PLC (IGT) has announced that lottery subsidiary Lottomatica, has been awarded a provisional concession by Italian gambling regulator Agenzia delle Dogane e dei Monopoli to operate its national lotto game.
Lottomatica will officially gain the concession in the second quarter of 2016, which is set to run for nine years.
Last March, IGT governance had declared that Lottomatica had entered a four-party consortium for the Italian lottery tender.
The bidding consortium which has been led by Lottomatica had seen the lottery services provider join forces with Italian Gaming Holding ( a subsidiary of SAZKA Group), Arianna 2001 SPA (an entity affiliated with the Federation of Italian Tobacconists) and Novomatic Italia.
IGT informed that the consortium’s bid was comprised of €770 million in upfront concession payments that will be paid in three installments between the time of the award and April 2017. IGT currently expects the first two installments of €350 million and €250 million to be made in 2016, with the balance made inApril 2017.
Furthermore, €130 million will be invested by the consortium to upgrade the technological infrastructure (systems, terminals) supporting the Lotto game.
IGT governance expects that approximately 25% of the capital related to the infrastructure upgrades will occur in 2016 and the balance in 2017.
