International Game Technology (IGT) CEO Vince Sadusky has talked up the potential cross-sell opportunities that could arise following the supplier’s successful consortium bid for the Italian lottery licence.
IGT will spearhead the LottoItalia consortium that also includes Allwyn, Arianna 2001 and Novomatic Italia, with the group set to be officially awarded the licence by the ADM, Itay’s customs and monopolies agency, within the next 35 days.
LottoItalia’s status as licence holder will run until 2034, after the group fended off competition from Flutter, which submitted a rival bid via its Sisal subsidiary.
IGT confirmed its own offer comprised of €2.23bn in upfront licence fees to be paid in three instalments between the date the supplier is confirmed as the licence holder and April of next year.
The first two installments of €500m and €300m are due to be paid before the end of 2025, while the remaining balance will be settled in the first four months of 2026.
Addressing analysts on a call regarding the licence award, Sadusky was quick to point out how beneficial landing the lottery tender again, having held the licence since 1993, could prove to be across multiple verticals.
Sadusky explained: “Today, there is an estimated 25% overlap between digital lottery players and those who are also engaged with icasino and digital sports betting activity.
“This presents cross selling opportunities that should drive increased average spending on ilottery and other games. Given this data and our Italy market experience, we believe there is a significant incremental value creation opportunity here without the need to become a market leader.”
Sadusky continued to discuss IGT’s cross-selling ambitions, adding: “The Italian market has developed significantly over the last five or six years, we’ve seen terrific growth in digital consumption.
“We’ve gone from a couple of million dollars to $11bn in total spend, so clearly the Italian population, very similar to the rest of the world, enjoys digital gaming. When you look at the composition of players, the overlap with lottery players is pretty significant.”
Management said cross-sell could be delivered via the newly launched My Lotteries app, which is already offering online lottery and scratchcards to Italian consumers. The opportunity to add online casino, sports betting and bingo were cited as key potential growth avenues.
IGT said licences had already been acquired for those three verticals, with the plan to “monetise the scale and scope of the lottery presence and player base” to expand.
Sadusky stopped short of providing a specific number when asked about IGT’s B2C market share ambitions, but issued an optimistic look to the future.
“Over the nine years, we have assumed good growth in ilottery”, he added. “We feel like that should be achievable, that should get in line with where many other European countries are today.
“We do think there’s a very real opportunity there and our growth projections are very reasonable.
“Around igaming and sports betting, it’s significantly less. Our assumption around the penetration is significantly less, because for us this is incremental. This is an incremental opportunity on top of the retail and digital lottery play.”
Sedusky later conceded that he does not anticipate being “at the top of the leaderboard” for igaming and sports betting in Italy by the end of the nine-year lottery licence.
The Italian online sports betting and online casino market leaders are Flutter and Lottomatica, as per the pair’s Q1 reports. Flutter has now added Snaitech to its existing offering, fronted by Sisal, which the group expects to take its share to around 30%.
Meanwhile, IGT also posted revenue of $583m for the opening quarter of the year last week, marking a 12% decline compared to the same period in 2024.
The post IGT CEO: There are “significant incremental” cross-sell gains with Italian lottery first appeared on EGR Intel.
Vince Sadusky outlines plans for expansion into igaming and sports betting verticals off the back of securing nine-year Italy lottery tender via €2.23bn bid
The post IGT CEO: There are “significant incremental” cross-sell gains with Italian lottery first appeared on EGR Intel.