IGT Subsidiary Lottomatica Enters into Consortium to Bid for Italian Lotto Concession …and More!

IGT Subsidiary Lottomatica Enters into Consortium to Bid for Italian Lotto Concession …and More!

IGT Subsidiary Lottomatica Enters into Consortium to Bid for Italian Lotto Concession

Lottomatica, a subsidiary of International Game Technology (IGT), has entered into a consortium to bid for the Italian Lotto tender. Other consortium members include Italian Gaming Holding (IGH), a subsidiary of Czech lottery and betting operator SAZKA and investment group EMMA CAPITAL; Arianna 2001, an entity affiliated with the Federation of Italian Tobacconists; and Novomatic Italia.

If the consortium wins the Lotto concession, a joint venture company will be established, with the majority of the shares held by Lottomatica (61.5%) and IGH (32.5%).

Last month KKCG, owner of SAZKA, together with EMMA CAPITAL also reached an agreement with Austrian gaming technology business Novomatic to jointly take over Casinos Austria and Austrian Lotteries.

In addition, KKCG, through EMMA CAPITAL, further controls a 15% share in Greek lottery group OPAP.


Federal German States Oppose New Interstate Gambling Treaty

A majority of the sixteen federal German states have rejected the proposals by the state of Hesse to make a fresh start and design a wholly new interstate gambling treaty from the ground up.

As a result, only minimal changes (“minimalinvasive Eingriffe”) to the existing treaty will be considered in order to avert looming infringement proceedings by the European Commission for non-compliant gambling laws.

Not surprisingly, the Deutscher Lotto- und Totoblock (DLTB) is applauding the preservation of the status quo and current concession model: “This is a clear rejection of further liberalization of the German sports betting market and thus a clear commitment to far-reaching player protection,” Lotto Hamburg director Torsten Meinberg said.


IGT Posts 12% Drop in Yearly Revenues

IGT posted a 12% pro forma decrease in revenues in 2015, a year in which the company was merged with Gtech.

Pro forma adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came in at $1.7 billion, a drop of 16% year-on-year on the $2 billion posted in 2014.

The pro forma figures represent the combined results of GTECH and legacy IGT for the period prior to the second quarter of 2015.

Reported results for the year tell a different story, with revenue coming in at $4.7 billion, 23% up on the previous year, with adjusted EBITDA also up by 16% year-on-year to $1.6 billion.

Marco Sala, chief executive of IGT, said: “We ended a year of transformation with a strong quarter for our lottery and gaming operations, enabling us to reach the high end of our EBITDA guidance.”

“We are confident that we have established a solid foundation from which we can continue to lead the gaming industry and grow our business.”


Swiss Casinos Looking to Enter Lottery Market

Spurred by falling revenues, the Swiss Casino Association is now calling on the Swiss authorities to block access to illegal foreign online games and to allow casinos to offer sporting betting services and lottery products.


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