Lottomatica likely to continue providing scratch cards in Italy
MILAN, Ita – Lottomatica looks increasingly likely to hold onto its scratch card concession for the next nine years after it was revealed that the lottery company has no competing bidders for Italy’s €9 billion ($12 billion, £8billion) scratch card provision.
Yesterday the Italian gaming regulator AAMS announced that only Lottomatica had presented a bid. Rival Italian lottery operator Sisal SpA said that it hadn’t made an offer to the regulator by yesterday’s deadline. The company cited economic context and the poor financial markets as its reasons for declining to bid on the concession.
The current scratch card concession, currently held by Lottomatica runs until May 31st. The successful bidder for the new, nine year concession will be required to pay an up front fee of €800 million to the government.
It is the scale of the up front fee to the Italian government which has deterred rival companies to Lottomatica from bidding as only the current scratch card concession holders can feasibly afford such a large amount.
Published: May 11, 2010