Five consequences of a deal: Intralot's stake in CyberArts

THE 35% STAKE that Greek lottery systems provider Intralot acquired in CyberArts for US$12m last month is interesting for a number of reasons, the most tantalising being the possible route it could provide Intralot into a regulated US market, starting with the state of California, CyberArts’ home state.

Other key aspects of the deal include Intralot’s Italian partner PartyGaming’s reaction to the tie, along with Française des Jeux’s plans for online poker in France.

1) Intralot gives CyberArts the financial backing to compete with major firms such as Playtech, Bwin or GTech-G2 or a US licence.

2) Intralot has been aggressively pursuing US state lottery contracts to overtake GTech. Its stake in
CyberArts means it is serious in its plan to compete strongly with its arch rival for the state contracts to provide online poker to US players.

3) Intralot has the option of upping its 35% stake in the next 12 months and acquire a majority stake in
CyberArts. This option is likely be taken up by the Greek firm.

4) Although Francaise des Jeux is still a CyberArts client, eGR understands that the deal between the two is likely to be altered as the French government puts pressure on the operator to partner with Barrière to offer a joint platform to French players.

5) Speculation is bound to surround Intralot and its Italian poker platform powered by PartyGaming. Indeed, why not go with Party for the California state contract?