International Game Technology (IGT) has announced that its consortium bid for the Italian lottery licence has been successful.
IGT, will lead the LottoItalia consortium that also includes Allwyn, Arianna 2001 and Novomatic Italia, is expected to be officially awarded the licence by the ADM [Itay’s customs and monopolies agency] within the next 35 days after the country’s Judging Commission officially completed its technical and economic analysis of the bid.
In turn, LottoItalia’s status as licence-holder will run until 2034, with the group fending off competition from Flutter, which submitted a rival bid via its Sisal subsidiary.
As per IGT’s announcement, its offer comprised of €2.23bn in up front licence fees paid in three instalments between the date the supplied is confirmed as the licence-holder and April 2026.
The first two installments of €500m and €300m are expected to be paid by the end of 2025, before the remaining balance is settled in the first four months of next year.
Vince Sadusky, IGT CEO, welcomed the news and the knock-on effect it could have on the supplier’s plans for other verticals.
“The €2.23bn investments in upfront fees reflect the significant value of the new licence, and IGT is confident that the investment will enhance our revenue and profit potential,” he explained.
“The exciting innovation pipeline with fresh launches planned for commencement of the new licence will drive Lotto wager growth. In addition, 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.”
It was a sentiment shared by Marco Sala, executive chair of the IGT board, who added: “The Italian Lotto concession is one of the world’s most important lottery contracts. IGT and its predecessor companies have successfully managed the licence for 30-plus years through constant innovation and the introduction of cutting-edge technology.
“The award is very gratifying, and we are honoured and excited to continue working with the ADM for nine more years.”
During last week’s earnings call following IGT’s Q1 results release, Sadusky told analysts that the company had earmarked $500m of a recently executed $1bn loan to go towards the lottery licence fee if it won the bid.
IGT confirmed the concession rate from total wagers will be 6%, alongside an additional 8% gross fee collected via digital channels for distribution.
Allwyn has also issued an update in response to the news, confirming its plans to contribute a pro rata 32.5% share of both the €2.23bn licence fee and all capital expenditure.
Robert Chvatal, Allwyn CEO, noted: “We’re thrilled to continue our strong partnership with IGT in Italy for another nine years. 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.”
In other IGT news, the company 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 lands Italian lottery licence until 2034 first appeared on EGR Intel.
Supplier will lead consortium that also includes Allwyn, Arianna 2001 and Novomatic Italia after successful €2.23bn bid
The post IGT lands Italian lottery licence until 2034 first appeared on EGR Intel.