Lottomatica pulls out of OPAP lottery consortium
Italian supplier reduces input to minimum possible following Greek privatisation agency's acceptance of bid yesterday.
Lottomatica has withdrawn from the OPAP-led consortium which yesterday won the right to exclusively manage and run the Greek state lottery for 12 years.
The Italian gaming supplier is understood to have reduced its stake in the consortium to the minimum level possible after the final bid accepted by the Hellenic Republic Asset Development Fund (HRADF) exceeded its investment limits.
The consortium, which also features Intralot and Scientific Games, was asked to increase its initial offer in order to meet the Greek government’s valuation of 190m.
The total value of the financial consideration to be paid to the HRADF is estimated to be 1.5bn over a 12-year concession period, amounting to approximately 125m a year.
During 2010, profit from the state lottery was approximately 80m.
Greek gambling monopoly OPAP will now own in excess of 67% of the contract, however it is likely that the consortium will utilise Lottomatica’s services once it is operational, a source told eGR.
If that is the case, Lottomatica is likely to still benefit financially from the deal, without having to invest the upfront fee.
The privatisation is part of Greece’s efforts to raise fund in order to tackle its huge levels of national debt.
HRADF is also responsible for the sale of the Greek government’s 33% stake in gambling monopoly OPAP, with seven interested parties currently thought to be preparing binding offers.