International Game Technology PLC (“IGT”) (NYSE:IGT) today announced the Italian regulator Agenzia delle Dogane e dei Monopoli has provisionally awarded the concession for the Lotto game to a consortium led by IGT subsidiary Lottomatica. The final award of the concession is expected to be made during the second quarter of 2016 and it has a duration of nine years.
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.
In addition, €130 million will be invested by the consortium to upgrade the technological infrastructure (systems, terminals) supporting the Lotto game. IGT expects that approximately 25% of the capital related to the infrastructure upgrades will occur in 2016 and the balance in 2017.
Members of the consortium will contribute to both the upfront concession payments and capital investments on a pro rata basis as follows: Lottomatica, 61.5%; IGH, 32.5%; Arianna 2001, 4%; and Novomatic, 2%.
IGT (NYSE:IGT) is the global leader in gaming. We enable players to experience their favorite games across all channels and regulated segments, from Gaming Machines and Lotteries to Interactive and Social Gaming. Leveraging a wealth of premium content, substantial investment in innovation, in-depth customer intelligence, operational expertise and leading-edge technology, our gaming solutions anticipate the demands of consumers wherever they decide to play. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has over 12,000 employees. For more information, please visit www.IGT.com.
Source: News Releases www.IGT.com