IGT has secured the rights to continue operating the Italian lottery, winning a competitive tender over rivals such as Novomatic and Flutter.
The company has managed the lottery since 1993, but faced fresh competition this year from firms including Allwyn and Arianna 2001. IGT’s current license expires in November 2024.
The company announced it will now lead the successful LottoItalia consortium, which also includes Allwyn, Arianna 2001, and Novomatic Italia. The new concession will extend through November 2034.
The winning bid includes an upfront payment of €2.23 billion, to be paid in three instalments between now and April 2026. The first two payments, €500 million and €300 million, are expected in 2025.
Barry Jonas of Truist Securities noted that this fee far exceeds the €770 million paid during the 2016 tender and surpasses prior estimates of €1.3 to €1.5 billion.
IGT CEO Vince Sadusky revealed during the company’s recent earnings call that it had earmarked $500 million for investment in the lottery, part of a broader €1 billion term loan package.
Vince Sadusky, CEO at IGT, mentioned:
We plan to significantly grow our iLottery sales and leverage that momentum to expand into the Italian B2C iCasino, sports betting and other digital gaming business.
Robert Chvatal, Allwyn CEO, added:
We’re pleased that Allwyn’s positive contribution to the consortium, including our proven track record of modernising and growing lotteries across Europe, will continue to support IGT’s exemplary stewardship of an important Italian national asset. We look forward to working together to grow the Italian Lotto, while developing innovative solutions to support responsible play.
